Dr. MuzammilSiddiqi, president of the Fiqh Council of North America, states: “Wine is haram according to the Qur’an and Sunnah. Allah Almighty says, ‘O you who believe, wine and games of chance and idols and divining arrows are only an abomination from the deeds of Satan. Leave it aside in order that you may receive felicity.’ (Al-Ma’idah: 90)
Hence, it is not allowed for Muslims to use wine in any form or shape.
Once cooked, it is true that the wine may not retain its alcoholic elements, but according to the Qur’an a Muslim must shun it and must not come near wine and drinking.
Cooking food with wine or consuming such food may lessen the prohibition of wine in the minds of Muslims. For example, if the wine becomes vinegar, it becomes pure, but Muslims are not allowed to purchase wine, in order to make vinegar.
In a similar fashion, one can say that it is not allowed for Muslims to mix or cook food with wine and if there is any food offered that was mixed or cooked with wine then Muslims should not consume it.”