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If you like, toss the bread cubes with a bit of olive oil and toast in a 400-degree F oven for about 15 minutes.
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This is not essential, but it is a nice touch.
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Toss the bread cubes (toasted or not) in a salad bowl with 1/3 cup oil and the vinegar and let them absorb this preliminary dressing for about 30 minutes.
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Add the remaining ingredients, including salt and pepper to taste, and quickly toss together.
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Garnish with silvered basil if you want a dramatic presentation.
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Serve at room temperature.
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Combine all ingredients except the olive oil in the container of a good processor or blender.
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Pulse a few times to chop the ingredients into small fragments.
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Add about 1/2 cup oil and pulse or puree quickly.
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Gradually ad more oil, as much as you need to make a thick puree.
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Do not overblend or overprocess.
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You should be able to see tiny pieces of basil leave rather than a homogenous green paste.
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Transfer the pesto to a jar and film the top with a little olive oil to keep its bright green color.
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The pesto will keep for 1 month in the refrigerator and 2 to 4 months in the freezer.
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Variations:
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For a Sicilian variation called peso ella trapenese, add 1 cup diced tomatoes to the basic mixture and use almonds instead of walnuts or pine nuts.
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Given the acid of the tomatoes, you may not need very much vinegar if you should decide to turn this into a salad dressing.
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Pesto vinaigrette:
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Thin 1/2 cup pesto with 1/2 cup olive oil and just 1 to 2 tablespoons mild wine vinegar.
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You do not want this to be too tart, as excessive acidity will obscure the flavor of the basil.
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The vinaigrette will hold well and stay green for up to 2 hours, either in the refrigerator or in a cool pantry.
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If you dont care about the faded color, it will keep for a few days.
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Pesto vinaigrette is good on tomatoes, mozzarella cheese, roasted peppers, cooked chicken, cooked seafood, rice, pasta and bread salads, bean salads, roasted or boiled potatoes, green beans, carrots and beets.
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Pesto mayonnaise:
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Add 1/2 cup pesto to 1/2 cup mayonnaise.