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comment Is powdered sugar a dietary alternative to granulated sugar?
If you add water to sugar, you get syrup / sugar solution. If you add water to powered sugar, you might very well get a glaze / icing. This is due to the (almost always) added cornstarch or potato flour. So powered sugar is not simply sugar. From a diabetes perspective, it is the same is sugar because it mostly contains sugar. But it is not equivalent from a cooking perspective. So I doubt sugar-replacement sweeteners would be a good replacement for powdered sugar in a recipe.