Good gracious, no! If something is 'palatable', this means that it is edible. It means that it is possible to put it in your mouth and swallow it. This an insult to the baker. Don't say it! Haven't we already given you lots of words to compliment people on their food? Nice ( or so nice, really nice) Delicious Lovely Gorgeous Yummy Heavenly... anything but 'palatable'!

You can, but I wouldn't suggest it as the best option. Even though it's often described as a positive word, in practice 'palatable' would be interpreted as just satisfactory or edible, so it wouldn't be much of a compliment - it might even sound slightly insulting. Some better options I can suggest are: delicious, tasty, wonderful, delectable. If someone said my cooking was palatable, it would sound to me like they were saying it wasn't horrible (but also not very good).

It's not a compliment. It sounds like you thought it was just about acceptable, but in fact not very good.