I have been making my own chili powder.
I buy the bags of dried peppers in the Mexican or produce section of the local grocery stores. Some of the peppers are mild and some very hot; the larger peppers are usually milder. Wash the peppers and then further dehydrate them until they are �crisp� and can be ground. I use the Magic Bullet or coffee grinder. I mix this powder with good paprika and have a good �chili powder�.
This powder is completely different from the stuff sold as chili powders in the stores. The store bought stuff is foul in my opinion, and mostly salt and cumin.