Potato powder, often called potato flour, is made from cooked, dried, and ground potatoes. It has a light potato flavor and grainy, starchy texture. Potato powder can thicken sauces, soups, stews, and gravies. It's also used to make gnocchi, potato bread, pancakes, and dough. Compared to regular flour, potato powder yields a denser, heavier end product. A little goes a long way when using it.