Chili powder is a staple spice in many kitchens, and it packs a lot of flavor. It's famously added to rubs, soups, stews, chili (of course), and a variety of Latin dishes. For example, you can use it to make your own enchilada sauce. Chili powder is a blend of flavors. It starts with dried chili peppers that are toasted, ground and then mixed with herbs and spices, including cumin, oregano, garlic and salt. ... The result is a spice blend perfect for any time you want robust flavorâ??Texan or Mexican. Chili powder is a robust seasoning made from ground, dried hot chile peppers (often ancho or cayenne chiles). ... Though it's sometimes labeled "Mexican-style chili powder," food historians seem to agree that chili powder didn't come from Mexico, and was invented north of the border.