My husband is trying to eat more Keto meals and this recipe is made up of his FAVORITE things! I sent him the link to it and he was inspired! Last night, he made himself a big hearty batch of this recipe and thoroughly loved it. He even shared photos of his meal on Facebook and our friends were in awe of his creation and the recipe you provided. I don’t enjoy mushrooms, so I’m reviewing this on my husband’s behalf. It was EXCELLENT!

Ketosis is an energy state that your body uses to provide an alternative fuel when glucose availability is low.  It happens to all humans when fasting or when carbohydrate intake is lowered.  The process of creating ketones is a normal metabolic alternative designed to keep us alive if we go without food for long periods of time. Eating a diet low in carb and higher in fat enhances this process without the gnawing hunger of fasting.

Anne, We’re sorry to hear that the burn warning came on when you made this! We updated the recipe above with the following note, which hopefully will help: We’ve tested this recipe upwards of 10 times and have never had the burn warning come on; however, several readers have had the warning come on, so we want to give a tip. In step 1 of the Instructions above, after removing the bacon from the pot, we recommend adding a splash of water, and use a wooden spoon to scrape up any brown bits that have formed on the bottom to deglaze the pan. After that, continue on with step 1 and press “Cancel” to stop sauteing.
If you would like to read more on ketogenic diets and ketosis, Jeff Volek and Steve Phinney discuss the new method of checking blood ketones in their book "The Art and Science of Low Carbohydrate Performance", and they also offer another good book "The Art and Science of Low Carbohydrate Living", which is a good book for those who need an introduction to the science of ketogenic diets. 
Sarah, We’re sorry to hear that the burn warning came on when you made this! We updated the recipe above with the following note, which hopefully will help: We’ve tested this recipe upwards of 10 times and have never had the burn warning come on; however, several readers have had the warning come on, so we want to give a tip. In step 1 of the Instructions above, after removing the bacon from the pot, we recommend adding a splash of water, and use a wooden spoon to scrape up any brown bits that have formed on the bottom to deglaze the pan. After that, continue on with step 1 and press “Cancel” to stop sauteing.
Although the hunger-reducing effect of KD is well-documented, its main mechanisms of action are still elusive. The global picture is complicated by the contradictory role of ketosis on anorexigenic and orexigenic signals (summarized in Figure ​Figure4).4). Ketones (mainly BHB) can act both orexigenically or anorexigenically. In the orexigenic mechanism, it increases the circulating level of adiponectin, increasing brain GABA and AMPK phosphorylation and decreasing brain ROS production. The anorexigenic mechanism triggers a main normal glucose meal response, increasing circulating post-meal FFA (thus reducing cerebral NPY), maintaining CCK meal response and decreasing circulating ghrelin. It can be postulated that the net balance of the contrasting stimuli results in a general reduction of perceived hunger and food intake. More studies are needed to explore the mechanism of potential beneficial effects of KD on food control.
In terms of weight loss, you may be interested in trying the ketogenic diet because you’ve heard that it can make a big impact right away. And that’s true. “Ketogenic diets will cause you to lose weight within the first week,” says Mattinson. She explains that your body will first use up all of its glycogen stores (the storage form of carbohydrate). With depleted glycogen, you’ll drop water weight. While it can be motivating to see the number on the scale go down (often dramatically), do keep in mind that most of this is water loss initially.
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