Liquid Clay comes in many forms, but many of us just refer to all brands as TLS, which actually stands for "Translucent Liquid Sculpey". In actuality, Sculpey certainly isn't the only one who makes Liquid Clay. Fimo makes a Liquid Clay called "Fimo Decorating Gel", and Kato makes a Liquid Clay called "Clear Liquid Polyclay".
From my experience, you can use a WIDE variety of things with your Liquid Clay. If you want it to be Translucent though, I suggest using Fimo Decorating Gel. It is EXTREMELY translucent and makes the BEST sauces and syrups and anything else that needs to be coloured but still still transparent. TLS will leave you with an opaque mixture, so it's good for things that don't need to be see-through like chocolate sauce, slime, blood, icing, etc.
For colouring, things like Oil Paints, shaved Oil Pastels, Chalk Pastel/Charcoal, Kneaded Polymer Clay, Eyeshadow, Metallic Powders, Alcohol-Based Ink, Dry Pigment Powder, etc...
DON'T use Acrylic Paint. It does BAD things when baked, and turns out like crap!
I can't tell you how many times I have been questioned on how to use liquid clay, though. How do you make icing? How do you make chocolate sauce? All sorts of things can be made from it, so here is a little list that I have compiled!
Blood Hah, figures I start out with something morbid, huh? A good thick red blood is a combination of TLS and red oil paint. Just squeeze a dab into the TLS, mix it up, and than drizzle or squeeze this liquid onto the object of your choice. Here is an example of BLOOD: [link]
Slime Like blood, slime is just compiled of TLS and a mixture of a bright or royal blue and bright yellow oil paint. Just mix and use! Here is an example of SLIME: [link]
Frosting/Icing When I make icing, it is generally a mix of TLS and Kneaded Polymer Clay. If you add Polymer Clay to TLS, it gives the mixture a very spreadable texture, and is much more thicker than using something like Oil Paint. Just take a ball of the colour of polymer clay you want your icing to be, and knead/warm it in your hands. When it is nice and warm, tear it into pieces and throw it onto a ceramic tile or into a container.
With the back of a spoon or a solid mixing object, add TLS and mix and mash it until it becomes smooth. A lot of people get discouraged because it is chunky at first, but trust me... just KEEP mixing. If it is too thick, add more TLS... if it is too thin, add more clay. After it is nice and smooth, spread it onto your cakes, cupcakes, and cookies with a stirring stick or something that spreads well! Here is an example of FROSTING/ICING: [link]
Syrup & Sauces A great way to make syrup is with TLS or Fimo Decorating Gel and shaved chalk pastels. If you want a VERY clear syrup, I suggest using Fimo Decorating Gel. Take a brown chalk pastel, and swipe it across a nail file or piece of very fine sand and put it into a little baggie. Add a little bit of Liquid Clay and squish it around with your fingers until it is mixed. This will make Maple Syrup! If you want something like a strawberry syrup, just use red chalk pastel! If you don't have any Fimo Decorating Gel, mixing the chalk pastel with some gloss also works well. Now you just pour it on top of Pancakes, Waffles, Cheesecake and such!
Here is an example done with Fimo Decorating Gel: [link]
Here is an example done with TLS, see how much more opaque the syrup is? [link]
Peanut Butter Whether you like it crunchy or smooth, all you need is TLS and some kneaded brown (peanut butter coloured) clay! Just knea the clay, add the TLS and mix mix MIX! The more you mix, the more smooth your peanut butter will be. If you don't mix it all the way, you have chunky peanut butter!
Whipped Cream Like Frosting/Icing, Whipped Cream is also made with a mixture of TLS and Kneaded Polymer Clay. Just add slightly more TLS. If you want that "piped" look, just scoop some into a baggie, cut the corner, and squeeze it out! You can also use Cake Decorating bags and tips, as well! Just make sure to keep ones just for using with your clay - don't use them for cake decorating once you use them with clay! Sometimes I like to add a tiny bit of Vanilla Scent to my whipped cream just for fun! Here is an example of Whipped Cream: [link]
Here is an example of how whipped cream or frosting can be PIPED to make it look really pretty: [link]
Chocolate Sauce: Is made the same was as blood and slime (Gross, huh?) except with Brown oil paint!
Drizzle: Great for finishing off baked goodies like cinnamon rolls and donuts! Just mix some TLS with some white oil paint (for Vanilla Drizzle) or any colour you want, stick it in a small baggie and make a TINY cut in the corner! Drizzle across your piece, and bake! Here is an example of Drizzle: [link]
Have anymore suggestions? Go ahead and make a comment!