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The usage of "this" and "it" in a given example

rubinguyen 3 / 5  
Oct 19, 2023   #1
I came across these sentences in Cambridge, and I do not understand which words "this " and "it" refer to. I have three questions that need your help as answers.

Here are they.
The example: "Put the butter, chocolate and sugar in a saucepan. Heat this over a low flame until it melts."
(1) "this" here refers to which word?
(2) "it" in that text is a dummy subject or a real subject?
(3) If both "this" and "it" imply a group of words before, why "this" is used first and" it" is used after that?

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