The Maillard reaction is the thing that makes cooked food taste good. Anything that browns is undergoing the Maillard reaction: meats, etc. And it turns out the sweet spot is right around 325-335 degrees. Sugars also start to caramelize at 300 or so.
So why 350? Most ovens cycle their heat source, e.g. the gas burner or electric coil. So the heat will go up and down during cooking. 350 means that you can have a sustained temperature where the reactions can take place, instead of dipping in and out.
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