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It doesn't really preserve well- It gets too soft to freeze. You could try pickling it though.
We usually just brush it with olive oil, sprinkle a little garlic salt on it and grill it.
You can layer it with fresh tomatoes and a little garlic & cheese and bake it until the cheese is bubbly. You can also Julienne it with zucchini and carrots, really lightly saute it in a little olive oil an add just a pinch of nutmeg at the end.
It's great on a flat bread or pizza too.
I found a great squash pesto recipe on http://www.TastingTable.com that called for zucchini, but you could sub yellow squash, I used both.
I normally saute yellw squash on medium-high heat it in olive oil then season with sea salt and cracked black pepper.
Slice it very thin and if they are tiny you can serve them raw or drop them in a pan with hot olive oil for just a minute and serve with chicken or fish.
As far as preserving, you might be able to quick pickle the squash with a mixture of salt, vinegar, and sugar. Just chop it up into small pieces and, like cooked squash, you have a nice topping for poultry and/or fish.