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The handy thing about chilli powder is that you have greater control over the resulting heat & taste intensity, compared to that achieved with flaked and chopped chilli. Chilli powder is probably the most versatile form that chilli comes in. It can be used to enhance the flavour of a dish or it can become one of the main constituents of a dish. For example, chilli powder could be used to uplift the taste of red pepper soup or mixed in with wet ingredients to make a chilli paste for frying vegetables.