I usually put it on "hot spots" after a bath. make sure you part the hair really well and put a bit directly on the skin. Try not to get too much on the hair otherwise your yorkie will look really greasy
I mix it with food too, but Uni will take it right off the spoon. She loves the stuff. I got two jars from Tropical Traditions like a year and a half ago. I'm almost done with the 2nd jar. I wouldn't add it in water, bc it will just float on the top and if the water is cold it will seize up.
Use it to cook scrambled eggs too. Good for both you and your pup.