I have never tried this so I can't comment on how well it turns out:
Basically Splenda and cornstarch, some have powdered milk, some have different proportions.
http://www.ehow.com/way_5231052_alternatives-powdered-sugar.html
http://diabeticenjoyingfood.squares ... .com/how-to-make-sugar-free-powdere/
http://www.grouprecipes.com/104313/ ... ment-for-diabetics---sugar-free.html
http://www.recipelink.com/mf/0/69829
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