The types of chocolate are determined by the percentage of cocoa solids (essentially the chocolate liquor content) and how they are processed. Some names are used interchangeably, so it’s best to read the label to know exactly what you’re getting.

A general rule of thumb: The higher the percentage of solids, the less sweet the chocolate, because there’s less sugar in the formula. (Generally, higher percentages of chocolate solids mean not much else to muck up the flavor.) Here’s a quick rundown of the lingo:
Unsweetened Chocolate
Baking Chocolate, Chocolate Liquor
A combination of cocoa solids and cocoa butter and nothing else; 100 percent cocoa. Unsweetened chocolate is too bitter to eat but is useful for home chocolate making, cooking, and baking.
Bittersweet Chocolate
Semisweet, Dark, Extra Dark, Extra Bittersweet
This is the type of chocolate I use most often. The solid cocoa content ranges from 35 to 99 percent, with less than 12 percent milk solids. That’s a big range, so look for an exact number, and if none is mentioned, check out the ingredient list to see what else is included.
Just having a high percentage of solids doesn’t guarantee good quality, but it does mean there isn’t a lot of room for fillers. Try a few brands before settling on your favorites for cooking. First listen to the snap when you break a piece in two; it should sound crisp. Many good quality bittersweet chocolates taste almost chalky if you’re not used to them, but they coat your mouth evenly without any waxiness or grittiness (that’s the cocoa butter at work).
Dark Chocolate
Sweet
With 15 to 34 percent cocoa solids and no more than 12 percent milk solids. Sweet chocolate is the “official” name, though it’s commonly called dark chocolate. The good stuff is fine for eating, though not really for cooking, because it doesn’t allow you to control the sweetness of your desserts as well as unsweetened and bittersweet chocolates.

Milk Chocolate
If you like sweet, melt-in-your-mouth chocolate, this is it; it must contain a minimum of 10 percent cocoa
solids, 12 percent milk solids, and 3.39 percent milk fat. But don’t skimp. Make sure it includes real ingredients and tastes rich and almost buttery. Milk chocolate should be as complex as bittersweet or dark chocolate, with the flavors muted against a backdrop of creaminess.
German (or German’s) Sweet Chocolate
This is not from Germany; the name comes from its inventor, Samuel German, who in 1852 invented a sweetened baking bar for the Baker’s Chocolate Company. It is sweeter than bittersweet chocolate. (And yes, the famous cake comes from this brand of chocolate, not the country.) Not super-high quality.
Cocoa Powder
After cocoa butter is pressed out of the nibs-or separated from the chocolate liquor-the solids are finely ground into a powder. “Dutched,” “Dutch process,” or “alkalized” cocoa is the most common; it’s been treated with an alkaline ingredient to reduce acidity and darken the color.

“Natural” cocoa powder is harder to find but worth the hunt and extra expense. It’s light brown, with more chocolate flavor. But they’re interchangeable in some recipes from the website here. (If you use natural cocoa and there’s no baking soda in the recipe, add a pinch to balance the acidity and improve leavening.)
White Chocolate
White chocolate is technically not chocolate but a confection made from cocoa butter. It must contain at least 20 percent cocoa butter, 14 percent milk solids, and 3.39 percent milk fat. It’s a completely different ingredient, though you can always substitute white chocolate for dark or milk.
There’s a chasm between good white chocolate and the cheap stuff. First, scan the label for strange-sounding ingredients; cocoa butter should be the first ingredient. Always taste it before you cook with it. Good white chocolate has a subtle flavor and isn’t waxy, gritty, or bland.
At its best, it melts very slowly in your mouth and is something like what you might imagine eating straight vanilla would be like. It doesn’t keep nearly as long as dark chocolate; only a few weeks.

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