Made from ground dried water chestnuts. Water chestnut flour is used more as a thickener and a coating for foods rather than as an ingredient for baked goods. When used as a thickener, water chestnut flour is usually stirred into water first before it is added to hot liquids and sauces. This technique reduces the formation of lumps that may otherwise occur (similar to cornstarch). Foods that are to be fried can be dredged in water chestnut flour to create a coating on the food. Water chestnut flour is available in some large food stores, natural and health food stores, and in Asian markets.