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Ultimate Chocolate Butter Cake Recipe or UCBCThere is pure or "real" chocolate, generally found in gourmet shops and baking chocolate, found in the grocery store. Both can MELTED to liquid form, with pure chocolate further TEMPERED to use for CHOCOLATE CONFECTIONS. Baking chocolate is perfect to use in RECIPES, as are chocolate chips or pure chocolate chunks. Chocolate is pressed into unsweetened cocoa powder and used for baking. For best results, be sure to use the type of chocolate and cocoa powder that the recipe calls for, as different varieties will react differently to heat and moisture, plus the taste and texture can change. You can SUBSTITUTE one for another, but within certain parameters.

Pure, also known as bitter, baking, or unsweetened chocolate, must contain no fat other than cocoa butter (with the exception of 5% dairy butter to aid emulsification, which does not have to appear on the label.) It also contains only chocolate liquor, called cacao (cocoa solids and cocoa butter), and flavorings plus a small amount of lecithin, an emulsifier. Depending on the variety of the cacao bean, 50 to 58% (53% is the average) of the chocolate liquor is cocoa butter, with the remainder being cocoa solids. It may contain flavorings such as vanilla or vanillin (synthesized vanilla). The addition of lecithin reduces the amount of cocoa butter required to cover the cocoa particles and frees the cocoa butter to act as a floating medium for these particles. It also makes melted chocolate less thick and more fluid.

Festive Caramel Mini Cake Petits Fours (Petit Four) Recipe TutorialMany baking recipes for chocolate desserts and cakes were developed with chocolate that contains about 53 to 60% cacao (amount of cocoa solids and cocoa butter as it relates to sugar; ie: more cacao and less sugar or less cacao and more sugar), and unsweetened cocoa powder, whether Dutch-Process (alkalized) or natural. If you substitute with chocolate exceeding 60% cacao or with different types of cocoa powder in recipes, you may need to make adjustments. 
NOTE: If the percentage of cacao is not indicated on the chocolate wrapper, it is most likely around 53%. US Government standards require a minimum of 35%; most high-quality dark chocolate contains around 60%.

Make sure you STORE chocolate properly so it lasts a long time.

CHOCOLATE LIQUORMade by grinding the center of the cocoa bean (nib) to a liquid form. Contains about 53% (av) cocoa butter and remainder cocoa solids when bean is pulverized.BitterBaking ingredient
COCOA SOLIDSResponsible for the dark, strong flavorStrongChocolate ingredient
COCOA BUTTERThe vegetable fat from the cacao been extracted from chocolate liquorCreamyBaking ingredient
BAKING, BITTERNon-alcoholic unsweetened chocolate liquor in solid formBitterBaking ingredient
COCOA POWDER (NATURAL)Powdery remains of chocolate liquor after cocoa butter is removedRanges from mild to strong, unsweetenedBaking, reduced fat and calorie recipes, ice cream flavoring
COCOA POWDER (DUTCH PROCESSED)Cocoa powder treated with mild alkalizing agent such as baking sodaStronger flavor and darker color than cocoa powderTo create deep color in baked goods, ice cream, beverages
DARK, SEMI-SWEET, BITTER-SWEET CHOCOLATEThe darkest of eating chocolates, high chocolate liquor content with added sweetenersStrong chocolate flavor with minimal dairy flavorChocolate chips, baking, coatings
MILK CHOCOLATEContains cocoa butter, milk, sweeteners & flavorings that are added to chocolate liquorCreamy, mellow chocolate with strong milk tasteCandy bars, baking, coatings
Used as coating for candies. Contains sugar, milk powder, hardened vegetable oil & flavorings. It does not contain cocoa butterSimilar to other natural chocolate but may have a waxy tasteLess expensive alternative to natural chocolates
WHITE CHOCOLATE: is now recognized as  "real white chocolate," but it does not contain cocoa solids.Blend of cocoa butter, milk solids, sugar, flavorings, such as vanilla or vanillin, sugar, and lechithin, and contains no chocolate solidsSweet, dairy taste with hint of chocolate from the cocoa butterCandy bars, baking, coatings
CAROB: The carob bean is from an eastern Mediterranean evergreen tree of the pea family. It is not chocolate.Made from the carob bean, it is sometimes used by those who are allergic to chocolateAvailable as either toasted or untoasted powder (toasting helps bring out the flavor)Carob powder, raw pods and carob chips