Heat oil in skillet. Saute chilies and only half of the garlic 1-2 minutes. Stir constantly.
Stir in peanuts and transfer to a pam sprayed 13x9" dish. Bake at 350F 5-8 minutes.
Sprinkle with salt and chili powder. Mix well. Transfer to a bowl.
Lower heat to 200°F.
Place remaining garlic in the unwashed 13x9-inch dish. Bake until garlic is dry and kind of light in color. It will get hard but be careful not to burn it. I'm not sure about the time this takes.
Mix dried garlic in with the peanuts. Usually you can store this in the original peanut container.
Shake here and there for the next couple of days. Break open a few chilie pods and shake the seeds in if you want it hotter. These taste better the longer they sit and will last several weeks if they don't get eaten first.