Homemade Chili Oil with Dried Peppers

02.08.26 05:15 PM - By Blossom Frey

How to Build Your Perfect Chili Oil

Wide recipe graphic showing a jar of red chili oil with dried pepper flakes and a list of common dried peppers arranged by heat level.
This homemade chili oil is made with fully dried peppers and infused with warm spices to create a rich, customizable condiment. Blend mild, smoky, or extra-hot dried peppers such as ancho, chipotle, jalapeño, cayenne, serrano, Anaheim, Hungarian wax, or Carolina Reaper to create a chili oil perfect for pizza, noodles, eggs, soups, dumplings, vegetables, grilled meats, and stir-fries.

Makes 1 pint

Ingredients

  • 2 cups neutral oil (peanut, avocado, grapeseed, or light olive oil) 
  • ½ cup dried pepper blend
  • 2 tbsp dried minced garlic
  • 1 tbsp dried minced onion
  • 2 tsp sesame seeds
  • 1 cinnamon stick (optional)
  • 2 whole star anise (optional)
  • 2 bay leaves
  • 1 tsp whole black peppercorns
  • 1 tsp kosher salt
NOTE: Lard or Tennessee olive oil is what I use to make mine.

Instructions

  1. Add the oil, cinnamon, star anise, bay leaves, and peppercorns to a saucepan.
  2. Heat slowly until the oil reaches 250–275°F (120–135°C). Hold there for about 10 minutes to infuse the spices. Do not let it smoke.
  3. Meanwhile, combine the dried pepper blend, garlic, onion, sesame seeds, and salt in a heatproof bowl.
  4. Remove the whole spices from the oil.
  5. Let the oil cool to 225–240°F (107–115°C).
  6. Slowly pour the hot oil over the chili mixture, stirring as you pour. It should sizzle but not burn.
  7. Allow to cool completely.
  8. Transfer to a clean glass jar.
  9. Let it mature. The flavor improves after 24–48 hours. Give it a stir or shake before using.

Heat adjustments

MILD

  • Banana Pepper (Red Ripe) – 0–500 SHU – Sweet, mild, lightly tangy.
  • California Chile (Anaheim) – 500–2,500 SHU – Sweet, mild, slightly fruity.
  • Ancho (Poblano) – 1,000–2,000 SHU – Rich, earthy, slightly sweet with raisin and cocoa notes.
  • Pasilla (Chilaca) – 1,000–2,500 SHU – Deep, earthy, rich with hints of berry.
  • New Mexico Red – 800–3,000 SHU – Earthy, slightly sweet, classic red chile flavor.
  • Cherry Pepper – 500–5,000 SHU – Sweet, fruity, slightly spicy.
  • Guajillo (Mirasol) – 2,500–5,000 SHU – Fruity, tangy, slightly smoky.

MEDIUM

  • Jalapeño – 2,500–8,000 SHU – Bright, grassy, fresh pepper flavor.
  • Chipotle (Smoked Jalapeño) – 2,500–8,000 SHU – Smoky, earthy, slightly sweet.
  • Fresno – 2,500–10,000 SHU – Fruity, bright, slightly smoky when dried.
  • Hungarian Wax – 5,000–15,000 SHU – Tangy, slightly sweet, clean heat.

HOT - Use a mix of the mild and medium peppers, then add 2 teaspoons of a hot pepper. Adjust to taste.

  • Serrano – 10,000–23,000 SHU – Crisp, bright, clean heat.
  • Cayenne – 30,000–50,000 SHU – Classic chili flavor with a sharp, clean heat.
  • Habanero – 100,000–350,000 SHU – Fruity, citrusy, floral with intense heat.
  • Ghost Pepper (Bhut Jolokia) – 800,000–1,000,000+ SHU – Fruity, smoky, extremely hot.
  • Carolina Reaper – 1,400,000–2,200,000 SHU – Fruity, sweet, intensely hot.
TIP: Let peppers fully ripen before drying. Red-ripe peppers develop better color, sweeter flavor, and produce a richer chili oil than green peppers.

Storage

Amish Water Bath Canning Method (Not USDA Tested) — Once it matures, strain the plant material from the oil. Don't wet your jars. Heat them slowly in the oven: 125°F for 5 minutes, then 175°F for 5 minutes, then keep them at 200°F. While the jars are heating, bring the oil to a boil. Fill the jars and water bath for 10 minutes, or store in the refrigerator. For the best flavor, use within 3–6 months.

Disclaimer: Methods marked "Not USDA Tested" are shared to preserve traditional and historical food preservation practices. They have not been evaluated or approved by the USDA. If you choose to use these methods, you accept full responsibility for that decision and agree to the terms of our Liability Waiver.


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Looking for More Canning Times? My Canning Times & Altitude Guide is a handy kitchen reference that includes hundreds of water bath, steam bath, and pressure canning processing times, plus easy altitude adjustment charts and step-by-step instructions for determining the correct processing time based on your elevation. It's the same guide I keep in my own kitchen when preserving food throughout the year.


Have questions or want to share how your batch turned out? Join our community, where we discuss recipes, food preservation, and homestead cooking every day. Come pull up a chair and swap stories with us over in our Facebook group, Rebel Canning With Amish Woman.

Blossom Frey

Blossom Frey

Lead Educator and Founder Blossom & Brine™
https://www.facebook.com/blossombrineco

Blossom Frey is the Founder and Lead Educator of Blossom & Brine™. Raised in an Amish community, she teaches food preservation, canning, and traditional homestead skills through practical classes, workshops, and educational resources.