The difference between extract and essence is simple, extracts are taken straight from the source and essence is generally manufactured.
For example Vanilla Extract is a natural product, it has a lot fuller and stronger flavour and is taken straight from the vanilla pod which has been mixed...
If you are adding flavour to your cake mix /buttercream etc. only add a teaspoon or a few drops at a time, stir/whisk into your mix and then taste test. You can always add in stages until it tastes to your liking.
Remember, you can always add in, but you can't take out! :)
Also see...
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