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As a barista, I've come to realize that when people ask for iced coffee, they don't always mean the same thing. They may be asking for a cold black coffee, which is how I'd define "iced coffee," but often they're wanting some kind of frozen or iced latte concoction. I'll give you the skinny on what I consider the best way to make fantastic iced coffee as well as some tips on how to make any hot coffee beverage iced without being watery.
For plain iced coffee, I strongly believe that the only way to make a great cup is to cold brew. Cold brewers are relatively cheap and simple, and can even be homemade. When you try to cool down regular hot brewed coffee via refrigeration or (gasp!) dumping ice into it, the result tends to be a watery mess. The cold brewing method is simple and produces a rich, flavorful, full-bodied drink. A cold brewing system usually consists of a small plastic brewing container (looks like a bucket) with a hole in the bottom, a rubber stopper, a small filter pad, and a pitcher. First, plug the hole with the stopper and place the filter pad in the bottom of the bucket. Add a pound of coarsely ground coffee to the bucket and fill with cold water, taking care to pour slowly so as to avoid air pockets in the resulting puck. Cover and let sit for 24 hours. Express the coffee into the pitcher by removing the stopper. After an hour, I recommend using a butterknife to cut an X into the grounds to break them up a bit and encourage all the liquid to drain into your pitcher or carafe. If you're used to cooling down hot coffee, you won't believe the difference. Cold brewed coffee is dark and rich, as it retains all the strength and flavor you enjoy in a hot cup. Pour over ice and enjoy.
I personally also enjoy a good iced latte. I'm not talking about any frozen blended drink, but hot brewed espresso made into an ice cold latte like magic. I've come up with a method for making this drink for customers in my coffeeshop. It works for lattes, mochas, any coffee drink except cappuccino. (I get requests for iced cappuccinos, but I wouldn't serve one. It's nonsensical, because the foam doesn't work iced. What the person usually wants is an iced latte.)
First, brew the espresso into a big ceramic mug (along with any flavored syrups or chocolate, if it's a mocha. Be sure to whisk chocolate or other sauces well with the espresso.) I then pour cold milk into the mug, pour all of it into a chilled metal shaker, and then pour over ice. The cold shaker and the extra pour will help tremendously in getting the drink really cold.
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