"smoke-dried jalapeño chili," 1950, from Mexican Spanish, ultimately a Nahuatl (Aztecan) word, said to be a compound of chilli "chili pepper" (see chili) + poctli "smoke."
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chili n.
also chilli,chile, "pod or fruit of a type of American pepper, used as a condiment," 1660s, from Nahuatl (Aztecan) chilli, native name for the peppers. Not named for the South American country. As short for chile con carne and similar dishes, attested by 1846.