Photon caches your original images and serves them from the WordPress.com infrastructure. When caching your images, it also optimizes them. Taking the example above:
Here is the original image size:
wget http://www.hippressurecooking.com/wp-content/uploads/2014/08/mock_cover.jpg
--2014-10-15 14:17:04-- http://www.hippressurecooking.com/wp-content/uploads/2014/08/mock_cover.jpg
Resolving www.hippressurecooking.com... 181.224.141.235
Connecting to www.hippressurecooking.com|181.224.141.235|:80... connected.
HTTP request sent, awaiting response... 200 OK
Length: 437635 (427K) [image/jpeg]
Length: 437635 (427K) [image/jpeg
And here is the same image, served by Photon:
wget http://i2.wp.com/www.hippressurecooking.com/wp-content/uploads/2014/08/mock_cover.jpg
--2014-10-15 14:16:33-- http://i2.wp.com/www.hippressurecooking.com/wp-content/uploads/2014/08/mock_cover.jpg
Resolving i2.wp.com... 192.0.77.2
Connecting to i2.wp.com|192.0.77.2|:80... connected.
HTTP request sent, awaiting response... 200 OK
Length: 342051 (334K) [image/jpeg]
Length: 342051 (334K) [image/jpeg]
Now let’s look at the same image, served by Photon, and resized by Photon to fit in the “Whole Grains Faster!” area on your site:
wget http://i2.wp.com/www.hippressurecooking.com/wp-content/uploads/2014/08/mock_cover.jpg\?resize\=190%2C190
--2014-10-15 14:27:37-- http://i2.wp.com/www.hippressurecooking.com/wp-content/uploads/2014/08/mock_cover.jpg?resize=190%2C190
Resolving i2.wp.com... 192.0.77.2
Connecting to i2.wp.com|192.0.77.2|:80... connected.
HTTP request sent, awaiting response... 200 OK
Length: 8227 (8.0K) [image/jpeg]
Length: 8227 (8.0K) [image/jpeg]
As you can see, Photon optimizes your images correctly.
There is no miracle, though: Photon starts from the original image you’ve uploaded to your site. If that image is very large, Photon will optimize it but the image size will remain large. We don’t want to over-optimize or your images would look blurry, or grainy, or pixellated.
If you’re worried about the size of your images, I’d recommend checking their size before to upload them to your site. You can resize them with an image editor until you get to an acceptable size. Photon will then optimize things a bit more starting from that optimized image you upload to your site.
I hope this clarifies things a bit.