Cinnamon extract is a more powerful flavored form of cinnamon, so it can be used in baking in place of the powder. It would offer the advantage of not changing batter color, or leaving specks behind. However, it can be very powerful and you want to be judicious in the measuring out. Depending on the maker, it can be a matter of using only drops to get the taste you are after. Too much can leave you gasping, just as the powder can do. But you can certainly use it any place you would use regular ground cinnamon. You can also use it to replace part of the vanilla sometimes called for in other dishes, and add it to hot drinks like tea or toddies.
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