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Chile con queso is a smooth, creamy sauce, used for dipping, that is made from a blend of melted cheeses (often Velveeta or another processed cheese, Monterey Jack or cream cheese), cream, and chili peppers; the latter sometimes in the form of the canned tomato and chile pepper mix sold by Ro-Tel.
Chile Powder is just that â powder ground from dried chile (capsicum) peppers. Itâs not the same as chili powder, which Iâll talk about in a minute. When you look at the ingredients of chile powder, you should see ONLY âchile peppersâ, âdry red chile peppersâ, or âdried cayenne peppersâ â something like that.ome Texas chili recipes use chili powder as the seasoning, while others use chiles with herbs and spices. New Mexico has a chile con carne made with dried, red New Mexico chiles or chile powder, herbs and spices. As far as how it is spelled, Iâve seen it spelled both as chili con carne and chile con carne.