The equipment required for baking, is an oven.   Heat is generated in the oven, and it is dry heat.  Cooking ingredient is kept on a tray, and in the heat it gets cooked.  This form of cooking is called "Baking".    Modern ovens  have evolved from the fire furnaces of old.

http://en.wikipedia.org/wiki/Baking

Baking is the technique of prolonged cooking of food by dry heat acting by convection, and not by radiation, normally in an oven, but also in hot ashes, or on hot stones.^[1] It is primarily used for the preparation of bread, cakes, pastries and pies, tarts, quiches, and cookies. Such items are sometimes referred to as "baked goods," and are sold at a bakery. A person who prepares baked goods as a profession is called a baker. It is also used for the preparation of baked potatoes, baked apples, baked beans, some casseroles and pasta dishes such as lasagna, and various other foods, such as the pretzel.

Many commercial ovens are provided with two heating elements: one for baking, using convection and conduction to heat the food, and one for broiling or grilling, heating mainly by radiation. Meat may also be baked, but is usually reserved for meat loaf, smaller cuts of whole meats, and whole meats that contain stuffing or coating such as breadcrumbs or buttermilk batter; larger cuts prepared without stuffing or coating are more often roasted, a similar process, using higher temperatures and shorter cooking times. Baking can sometimes be combined with grilling to produce a hybrid barbecue variant, by using both methods simultaneously or one before the other, cooking twice. Baking is connected to barbecuing because the concept of the masonry oven is similar to that of a smoke pit.

The baking process does not add any fat to the product, and producers of snack products such as potato chips are also beginning to replace the process of deep-frying with baking in order to reduce the fat content of their products.

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