Basically put it in whatever fat you're using and warm it over low heat for a while. I aim to break it up into the smallest pieces possible. Maybe you could take a mortar & pestle to it to get it as fine as possible, though I've never tried that. Let it cool, then bake as usual.
Heavy flavors will disguise the taste better, of course. The icing I made was really strong in flavor; my roommate made chocolate chip cookies that you would never guess were special. I might try it in something like zucchini bread next time I decide to cook with it.