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I've been shooting and eating squirrel my entire life. Skin it out, quarter it up, smother it down with onions and garlic and Your choice of seasoning, make a roux to thicken the juice/drippings into a gravy, and serve it over rice.
As far as the pelt goes, I can't think of much other than tying flies. Get into Fly Tying and catch fish with the squirrel tail hair flies from the squirrel You shot.
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