Although stores here do sell ground annatto, we prefer the seed for traditional dishes. We let them simmer in vegetable oil (especially corn, sunflower or soybean oil) for about 15 minutes, until the oil takes on a deep orange color. We drain it and use it to color corn flour (e.g. in hallacas, Venezuelan Christmas tamales) and in stews. Is it the same technique? Basically, it is, only that we add 1 or 2 tablespoons of seeds per cup of oil, approx. When annatto is ground, you can add it directly in the pot as you cook.
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