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Typically, no. Powdered sugar, also known as confectioners’ sugar, will have a much different consistency than granulated sugar, which will have a huge effect on your final product. For example, think of buttercream icing; confectioners’ sugar is used because it has a softer consistency that will melt easily in with the other ingredients, producing a smooth mouth feel. Granulated sugar is too coarse to blend it and would have a gritty texture. Follow your recipe and use the type of sugar called for in the ingredient list.