Powdered sugar can be used as a substitute for granulated sugar in some recipes, but there are important considerations and limitations. When substituting powdered sugar for granulated sugar, use about 1 3/4 cups of unsifted powdered sugar for every 1 cup of granulated sugar. This works best in moist quick breads and muffins. However, powdered sugar contains cornstarch, which can affect texture and consistency, making it unsuitable for recipes requiring creaming butter and sugar together or where a grainier texture is important, like in cookies or cakes that rely on air incorporation. Also, powdered sugar can make baked goods denser and may cause sauces or puddings to thicken more quickly. In summary, powdered sugar can replace granulated sugar but may change texture and baking outcomes depending on the recipe. It is generally not recommended for creaming or recipes where sugar granules are needed for texture and aeration.