I have used it to express praise for Asian food that isn't quite covered by a simple "delicious", but I'm a bit worried someone might consider it racist.
Anything awful tasting, which is offered to another person to show how awful it is. The recipient may or may not be aware of the foul nature of said "food" product.
Have some of this dericious candy I bought at the Asian Market. Yeah, it does smell like death, but it's dericious. Try it.