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Granulated sugar can be used as a substitute for powdered sugar, but not as is. To substitute powdered sugar with granulated sugar, you must understand the difference between the two. Powdered sugar is granulated sugar that has been ground up into a finer powder. To prevent it from clumping up, cornstarch has been added as an anti-caking agent.
To simulate this difference when substituting powdered sugar with granulated sugar, take 1 cup of granulated sugar and 1 tsp of cornstarch for every 1 cup of powdered sugar needed, and grind them in a blender. Make sure to use a blender, because a food processor won't work for this.
Alternatively, if you want to remove the cornstarch, due to allergies or lack of cornstarch on hand, you can grind up just the granulated sugar by itself. The cornstarch is only used to keep the powdered sugar substitute from clumping up during storage. This is an excellent solution if you plan on using the powdered sugar substitute right away.
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