Potato powder is used as a thickener for soups, gravies, sauces, as an ingredient in potato-based recipes to enhance the potato flavor, and is often mixed with other types of flour for baking bread and rolls, biscuits, pancakes, bread, muffins, cookies as a thickener and in gravies with other flours to improve texture or to coat fried foods.. It can be mashed into flour and used to prepare gulab jamuns and paratha.