Potassium Iodide will not colour your flour/starch unless it's converted to Iodine first. Iodide is I- which is an Iodine atom with one electron added. It is colourless and practically tastless. The potassium tastes a little salty (like sodium, but a little different).
Iodine is I2 which is two iodine molecules together. It is purple and is a gas at room temperature.
Iodine dissolves in water very poorly. It does dissolve very well in a watery solution of potassium Iodide though. That's why a purple iodine solution always also contains iodide (either potassium or sodium, never seen the sodium kind though).