I only use it to make bread, cinnamon rolls and pancakes right now. Still looking for a way to use it in my pizza dough. I'm picky about pizza dough.
I can second the part about the hooch, mine usually gets one if I don't feed it for a few days but it doesn't hurt the starter any. Totally harmless.
Now if it starts molding or smelling off, then you might have something wrong and you should probably throw it away.
Yes, the liquid is harmless. The sourdough ... If he drinks the liquid, he will not be so harmless! He gets very ... Sour!
Edited because the picture didn't post.
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