Pasting text from my cooking forum on another venue:
"Ladies, I have been eavesdropping on your thread for a good while and enjoy it very much. I just couldn't let this go by without a response. Not a good idea to use paper towels for coffee filters. My son-in-law works for Kimberly Clark. They make paper products. Paper towels have Formaldehyde in them, not enough to be harmful in ordinary usage, but I don't think I would risk leaching it out in to my coffee."
/end paste
The first thing that jumped to mind was the "Viva method for smoothing" yall. I don't know if this may be a health hazard, but fore warned is fore armed? (I'll never nuke bacon in paper towels again).
That sounds too weird to me.. they tell you to cover your food in the microwave now with paper towels... There is formaldehyde in a lot of stuff. Just like any other "harmful" thing.. as long as the levels are low it's not harmful.
I would think for the small amount of time the paper towel is in contact with the cake, the Viva method wouldn't present a risk. For any other uses, I suppose we all have to do our own research and make our own decisions. I never have understood using paper towels as coffee filters, anyway, because coffee filters are cheaper than paper towels and do a better job. 
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