don't fry in olive oil unless you want a fire. It has a very low flashpoint.
to answer your question I try to stay away from fried food as much as possible. it is my weakness.
Extra virgin has a low flash point, but you can pan fry in normal olive oil.
As for frying in general, you need to watch the Good Eats episodes on frying. It can be done healthily, but requires you to watch a few things.
1. Know your oils. Oils such as extra virgin will smoke and eventually ignite at fry temps. Oils such as peanut and safflower are ideal frying oils because of their high smoke/flash points, which allow the requisite high fry temps (more below).
2. You must fry in a fryer or pan that will retain it's heat (ie. cast iron).
3. You must use enough oil. If you don't use enough oil adding food will reduce the oil's temp too much, requiring you to cook foods in it for a longer period of time, increasing oil absorption into the food.
4. Use a large enough oil basin/pan. If the pan is too small, and you still use the required amount of oil, when you add the food you could end up causing a spill over and a fire will most likely result.
5. Heat the oil to a high enough temp. This will speed frying, requiring less exposure to the oil. It will also serve to cause moisture in the food to vaporize, which effectively buffers the foods from saturation from the oil(a proper amount of oil and a heavy/thick cooking pan will also help maintain temp). If the temperature of the oil drops too much, the moisture in the food will cease to vaporize, no longer providing a buffer for the food and allowing the oils to soak in, which leads me to my next point...
6. Know your fry times and required oil temps (get a fry thermometer if you don't have one) as per your recipe. When you fry, you will see the bubbles come off the food. This is caused by the above mentioned vaporization, and effectively shields the food from absorbing the oil. Once those bubbles are gone, the moisture in the food is gone, meaning that the oil can move right in (and your food will be dry as hell). So you need to cook your food thoroughly before the water vapor is all gone, which requires a high enough oil temp.
Obviously don't fry everyday (moderation is the key to any good diet), but if you follow the rules and fry correctly you can make a delicious fried meal that is relatively healthy
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