Potato starch is the starch extracted from potatoes. It is a fine, dry starch with a mild sweet flavor. In cooking and baking, it adds moistness to baked goods and has a thickening power commensurate to cornstarch. However, it tends to thicken at a lower temperature than cornstarch and results in a glossier and more translucent sauce than one thickened with cornstarch. It also tends to have a less robust flavor than starches made with corn. Sauces made with potato starch also tend to have a silkier mouthfeel. Some people shy away from using potato starch due to a belief that it can lump. To this I say, lump you not!! Simply dissolve your potato starch in seltzer water and lumps will be a thing of the past!
Potato starch also works wonderfully well as a coating. When a recipe requires a flour coating, I simply substitute potato starch for the flour and end up with magnificent results.