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Ancho is a dry version of ripe poblano chili. It comes from Mexico and is less spicy. It is most commonly used as a ground spice in Mexican cuisine.
Ancho chiles can be reconstituted by soaking them in warm water, or they can be ground up or crushed and added to a recipe in that fashion. Ancho chiles have a deep red color and a wrinkled skin. Sweet and smoky with a flavor slightly reminiscent of raisins, their heat is mild to medium-hot.
You could also use a spice grinder to grind dried ancho chiles into a powder to use in spice rubs or for making mole, enchilada sauce, and chili.
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