Cryptic crossword clue
Type of chilli found in Mexican chorizo 5

The most common and most likely answer to this crossword clue is the 5 letter word ANCHO

I've seen this crossword clue in The Times
A
N
C
H
O

Buddy explains!

The straight part
We know that "Type of chilli" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case type of chilli = ancho.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does ANCHO mean?

ANCHO noun
  1. A broad, flat, dried poblano pepper, often ground into a powder.

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