In this paper we review the coset construction for winding subalgebras of affine Lie algebras. We classify all cosets of central charge \widehat c<1 and calculate their branching rules. The corresponding character identities give certain `doubling formulae' for the affine characters. We discuss some applications of our construction, in particular we find a simple proof of a crucial identity needed for the computation of the level-2 root multiplicities of the hyperbolic Kac-Moody algebra E_{10}.
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