Mix the Chili Powder: In a small bowl, combine all chili powder ingredients. Set aside.
Cook the Chili Base: Heat olive oil in a large pot over medium heat. Add minced garlic, chopped onion, and bell pepper. Sauté until softened and fragrant, about 3–4 minutes.
Brown the Beef: Add ground beef and cook until browned, breaking it up as it cooks. Drain excess fat if needed.
Toast the Spices: Stir in the tomato paste and homemade chili powder. Let the spices toast in the beef mixture for about 30 seconds—this step builds deep, rich flavor.
Simmer the Chili: Add crushed tomatoes, crumbled beef cubes, water, and salt. Stir to combine, then bring to a simmer. Reduce the heat to low and let it cook uncovered for about 2-3 hours, until thickened and saucy. Taste and adjust seasoning as needed.
Cook the Dogs: While the chili simmers, cook the hot dogs according to package instructions—grilled, boiled, or pan-seared all work.
Warm the Queso: Just before serving, heat Panchos Queso until hot and melty. (Microwave-safe bowl or small saucepan on low heat works perfectly.)
Assemble: Place each sausage in a bun. Spoon on some homemade chili, then drizzle generously with warm Panchos Queso. Top with chopped white onion and a squeeze of yellow mustard.
Serve as a Bar: For a crowd, keep chili and queso warm in separate bowls or slow cookers. Let everyone build their own ultimate chili queso dog!