Nutritional Potato starch is starch extracted from potatoes. To extract the starch, the potatoes are crushed; the starch grains are released from the destroyed cells. The starch is then washed out and dried to powder. Potato starch is a very refined starch, containing minimal protein or fat. It is used in noodles, wine gums, cocktail nuts, potato chips, hot dog sausages, bakery cream, sponge cake , instant soups and sauces.