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Serviettenknodel

Is this more of a German dish, an Austrian dish or both.

I think it doesnt matter. Austria is part of german settlements. Austrians are ethnical germans. They speak german they eat german they live like germans .. they are germans. Read the history of austria you will see. Borders exist only on the map.

Uhm, basically: No. They speak a variety of German language, but that's about it. They have their own culture, cousine, history, everything. Saying there is no difference between Germany and Austria would be as true as saying the US and Britain are equal.
"US and Canada" would be a better comparison, I think. And the Serviettenknödel is a typical Austro-Bavarian dish, but almost unkown in Germany outside of Bavaria.

It's a bavarian dish. Austrians are Bavarians and basically Germans. They just started being dillusional about it since about 75 years.