I have many Chinese friends, mostly cross Taoist Buddhist (this is most common!) The practice (one I've adopted, too), is twofold. The New Years offering, which are the small oranges (symbolic of gold and good fortune), are allowed to completely dessicate. They stay orange, but harden. It's quite wonderful. I have dozens of years-old dehydrated good fortune oranges all over my temple and house.
The daily offerings are general water, incense and oranges (favored over other fruit). However, most people will eat the blessed fruit after a few days when they replace the fruit. It is considered quite lucky, fortunate and a blessing to eat the offered fruit after a few days (presuming you add new fruit to the altar.
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