Annatto Seed has a slightly sweet and peppery flavor. From South America, is used in rice, cheese and butter for coloring or seafood dishes. To make achiote (annatto oil) by cooking 1/4 cup annatto seed with 1/2 cup olive or vegetable oil. Cook 10 - 15 minutes, strain seeds, then refrigerate the bright yellow oil. Ground annatto seed can be used as a natural yellow food color. It is more widely used in the Caribbean and Latin America, especially Guatemala and Mexico
They may be added directly to a cooking liquid or infused in hot water until the desired color is obtained and then used for stocks or coloring rice. It is also common to fry the seeds in oil for a few minutes (best done in a covered pan as the hot seeds jump), then discard the seeds and use the oil. Try using one teaspoon of seeds to 4 tablespoons of oil. Annatto seeds should be kept out of light in an airtight container.