A cookie product is prepared having a liposome-encapsulated component dispersed therein and leavened to a crumb-like structure. The liposomes substantially retain their structural integrity during the processing, mixing, and post extrusion baking and thus remain intact in the finished cookie. The liposomes may encapsulate flavorings, fragrances, preservatives, anti-staling agents, and other labile food additives. The liposomes may provide a sustained release of the encapsulant to the cookie during storage and prior to consumption. The encapsulant may be released when the cookie is baked or eaten by the consumer. The cookies are prepared by feeding the cookie ingredients to a blending zone of a cooker-extruder and heated to form a heat treated mass. A liposome-encapsulated component is added to the cooled heat treated mass and mixed at low pressure and temperature to prevent rupture of the liposomes. An optional source of water may also be admixed to form a dough-like mixture. The dough-like mixture is then extruded into shaped cookie pieces, and leavened by heating in an oven. The heat treating of the dough-like mixture in the cooker-extruder reduces the post extrusion baking time such that liposomes prepared from phospholipids having a high phase transition temperature substantially retain their structure integrity in the leavened cookie.