I would always use butter as it is natural, but that is a personal choice. I cannot comment on Butter/Margarine difference for baking; both work. You need to increase your wet ingredients a little to compensate. Butter is a popular spread and baking ingredient that some people nonetheless avoid for various reasons. For the perfect texture and rise every time, avoid these common baking pitfalls and butter fails. Butter oil or it is also called butter oil, or clarified butter, or Ghee in Indian stores, but use 20 percent less what the butter quantity asks for in the recipe. If using cake pans that are not non-stick coated, it is always preferable to use block butter or block margarine to grease the pan. For health reasons, many people prefer to use liquid oils, such as canola and olive oil, in place of butter for dairy-free baking. You can substitute avocado for butter in a 1:1 ratio, but since it doesn’t melt the same way it won’t coat your dry ingredients the same. As the cake bakes, those air pockets trap gas created by the recipe’s baking powder or soda. Without butter, the cake will be relatively dense and have a disappointing, leathery texture. Still, you can enjoy foods in plenty of ways without the need for butter. In many cases, this will still produce fabulous results—however, it is also often the case that oil cannot stand in for butter on its own. Also You may try any hydrogenated (solid ) fat… If you use the wrong kind of butter or add it too quickly to your mixture, your baked goods can end up dry, flat, and lacking in flavor. You can’t substitute oil for butter in most cake recipes because butter is a solid and serves a structural purpose. In my kitchen, I just substitute avocados for half of the butter instead. When you cream the butter and sugar together, you’re creating millions of tiny air pockets in the butter.