Chipotle chilies are smoked and dried jalapenos. The unique combination of smoky flavor with peppery heat makes these perfect for so many uses. They can be put in soups, sauces and beans or ground into a fine powder and added to spice rubs or sprinkled over vegetables.
Source: http://bbq.about.com/od/fruitandvegetables/ss/aa100607a.htm
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