Hmm, I usually see it as sweet, bittersweet, and hot. I keep the sweet and the bittersweet on hand. I don't know if the differences are solely due to hot peppers. I also keep piment d'espelette stocked, and I love that more than any pimenton. I tend to use the piment d'espelette at the finish and the pimenton during the cooking. I'll be really interested others thoughts.
The owner of a store that sells all things Spanish told me that he only buys the dulce for himself. When he wants hot, he adds cayenne. That is what I do now. Works very well. You have total control of heat.
pimentón is smoked spanish paprika. it is generally bought in powdered form, usually in little squarish tins. the two types you're most likely to find in the states are the sweet (dulce) and spicy (picante). it has a zillion applications, but my two favorite ways are to use it as a dry rub for meat and to toss it on fried or roasted potatoes. for me, a little goes a long way.
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