Cayenne powder is used to make liniments and herbal oils. Cayenne extracts can be taken in capsule and liquid form. Both fresh and dry cayenne peppers are used in cooking. This stimulating spice is rarely used as a single ingredient tea, but is added to herbal blends in small amounts, generally less than 1/8th teaspoon. Sprinkle cayenne powder on cuts, scrapes and abrasions to stop bleeding. Contrary to what you might think, it does not burn. Capsicum extracts are used in OTC analgesic rubs and creams.