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I had my first one a long time ago. It was also my last one. Poor imitation of a 7-11 Slurpee.
What’s an ICEE? Looks to me like ground ice with some syrup to give it some flavour?
Nailed it. They’re kept in a slushier state than a regular shaved ice type dessert and kept from freezing solid by keeping it in a container that automatically stirs it. I haven’t had one in probably over 20 years, but I remember it being very smooth with the occasional ice pebble in it.