Add to any sauce, to give it a sharp zippy flavor. The volatile oils which give horseradish its pungent nature are quite similar to those found in mustard, when you cook horseradish, these oils evaporate, reducing the bite. This is why you normally see horseradish used in uncooked sauces.
For a thick, sharp horseradish sauce, mix 1 part powder with 3 parts water. For a thinner sauce, thin it out with yogurt, lemon juice, or vinegar. For the cocktail dipping sauce, add 2 tablespoons horseradish powder to 1 cup tomato paste. For a really hot mustard sauce, mix it with Oriental mustard powder and vinegar. Or sprinkle this into Bloody Marys for a real eye-opener!
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