Cooking a sauce uncovered + adding water, vs. Cooking covered?

I'm watching a video showing an authentic bolognese ragu, and the sauce is being simmered for about four hours- so the chef simmers it uncovered, adding water as it reduces (altogether he uses about two liters of water).

What is the difference between cooking uncovered and adding water, and cooking covered? Is there a difference in the end product or is it just a difference in style?

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