Annato is used in lot of Cuban, Filipino, Portuguese, Basque, Mexican, Puerto Rican, and Jamaican Cooking. If you know of any dish that uses annatto please let me know. Annatto are small rusty red seeds. They do have a subtle bitter flavor, similar to saffron but much cheaper. They also provide a stronger natural food coloring than saffron.
Annato is fairly cheap in Spanish markets and often sold in large bags for $2 or $3. It is also sold at exorbitant prices in "gourmet shops" in tiny little containers. The Philadelphia Broad street market sells a half pound package for $8. I have also seen it for sale in Chinatown at decent prices.
To make annato oil, heat two cups of vegetable oil in a 2 quart heavy saucepan to 350 degrees. Add 1 cup of annato seeds and remove the pan from heat. Allow to cool and strain out the seeds. Store the oil in a glass jar in the refrigerator.
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