With qualities similar to mustard, horseradish also has pungent volatile oils. Use horseradish powder when you are looking for some sharp biting zing in a sauce. Horseradish powder is a hot, spicy powder that is typically blended into egg or cream based sauces, most commonly sour cream or mayonise and the end result is a potent and hot dipping sauces. When cooking horseradish, the spiciness mellows as these oils evaporate. This is often the reason you are more likely to find horseradish in uncooked sauces.