How to create a panel with related content based on multiple terms.

I have several content types and want to show a pane with related content. I have tagged my content with a vocabulary called tags. The intended result if that if I have recipes tagged for lunch and dinner that I can see other recipes alongside the current recipe that are also suitable for lunch and dinner. A variation on this view would be that I can see ingredients (rather than recipes) that are suitable for lunch and dinner.

I found some good information in the following posts:
from views issue queue http://drupal.org/node/1058674
and from panels issue queue http://drupal.org/node/1111384
This post requires some code which it looks like views already handles internally though

I created my view based on the instructions at http://drupal.org/node/1058674 but I am puzzled by what options to set on the panels side of things. I get mixed results after trying all the different combinations but never exactly the matching related content

When I add my view to a node panel, I am presented with two "content" dropdowns:
Content: Has taxonomy term ID and Content: Nid (just below the override title checkbox)

For "Content: Has taxonomy term ID" it seems I should put the name of my vocabulary which is "tags" This vocab doesn't show up in the list. It is a term reference field with the autocomplete term widget(tagging) style widget. Is this not allowed or is it perhaps a bug? I do see other term reference fields that do not have autocomplete/tagging style widgets.

I assume I should also check "send arguments"

Thanks for looking at this.
Selwyn