Abstract: Heated surrogate medium is placed in heat transfer relation with high moisture content waste material where water is evaporated to steam. By agitating the mixture of waste material and heated surrogate medium, particulate matter from the waste material is entrained in the steam. A separator separates the steam and dried waste material and supplies the dried waste material to a burner for heating the surrogate medium. The separated steam flows to a stack or to the surrogate medium and oversized waste material discharged through an outlet of the drying zone for flowing additional particulate material from the waste material flowing through the discharge outlet back into the drying zone. The discharged surrogate medium and the oversized waste material are separated and the separated surrogate medium is recycled into the heating zone.