I have long been advised that powders can be harmful to a baby's lungs if they inhale it, and hence the change for some companies to corn starch.

But does this reduce the risk? Or does it just reduce the amount of dust?

This is a good question. I actually heard it was cancerous if inhaled in large amounts. My mom told me that rather than pouring the baby powder on them to put some in your hand away from the baby and then pat it on him. This way you limit baby's exposure to it.

I'm not sure of the cancer-causing ability but any inhaled chemical/powder/etc can irritate the lungs and cause the capillaries to bleed as the skin is much more delicate and the abrasiveness of the inhaled substance can be a problem. I've never been a big fan of powders myself and talc based can't be used on girls.

Also anything that is a fine powder and enter the lungs and cause damage when inhaled. But some things are worse because of their structure, like talc.

I just do as Ayan suggested - I put it in my hand first.