If life were fair, Chile with an e would refer only to a country in South America, and chili with a second i would refer to a type of pepper, and also to a spicy stew. These spellings are recommended, but with the caveat that not everyone agrees. In New Mexico, the stew they eat is chile, not chili. The stylebook of the Los Angeles Times says the dish is chili, but the pepper is a chile. And there are even some who spell the pepper or the dish chilli.