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Potato starch is a very fine white powder starch, with a texture much like cornstarch. Potato starch is made from the dried starch component of peeled potatoes. It has no potato flavor so works well in most recipes. As part of the starch component of a gluten-free flour blend, potato starch lends a light, fluffy texture to baked goods. It is also a great thickener in gravies, sauces, and even in custards and puddings, which typically use cornstarch.