HTML-encoding lost when attribute read from input field

I’m using JavaScript to pull a value out from a hidden field and display it in a textbox. The value in the hidden field is encoded.

For example,

<input id='hiddenId' type='hidden' value='chalk &amp; cheese' />

gets pulled into

<input type='text' value='chalk &amp; cheese' />

via some jQuery to get the value from the hidden field (it’s at this point that I lose the encoding):

$('#hiddenId').attr('value')

The problem is that when I read chalk & cheese from the hidden field, JavaScript seems to lose the encoding. I do not want the value to be chalk & cheese. I want the literal amp; to be retained.

Is there a JavaScript library or a jQuery method that will HTML-encode a string?

EDIT: This answer was posted a long ago, and the htmlDecode function introduced a XSS vulnerability. It has been modified changing the temporary element from a div to a textarea reducing the XSS chance. But nowadays, I would encourage you to use the DOMParser API as suggested in other anwswer.

---

I use these functions:

function htmlEncode(value){
  // Create a in-memory element, set its inner text (which is automatically encoded)
  // Then grab the encoded contents back out. The element never exists on the DOM.
  return $('<textarea/>').text(value).html();
}

function htmlDecode(value){
  return $('<textarea/>').html(value).text();
}

Basically a textarea element is created in memory, but it is never appended to the document.

On the htmlEncode function I set the innerText of the element, and retrieve the encoded innerHTML; on the htmlDecode function I set the innerHTML value of the element and the innerText is retrieved.

Check a running example here.