We used it for lying (instead of soap) because we thought the punishment should be relevant to the offense. Daughter was never harmed and now loves very spicy food...
I make no claim to being a great parent - our goal was to actually like our children as they grew, and we do (even through the teen years!)
I used some bad word when I was in the 3rd grade and my Mom had me sit on the kitchen and handed me a bottle of Tabasco.
When she returned I had drank the whole thing.
After that, it was back to Lava....