1In 4-quart saucepan, heat oil over medium-high heat. Stir in sugar and chili powder. Add popcorn, and shake to coat popcorn evenly.
2Cover pan, and start shaking back and forth. Keep shaking to prevent popcorn and sugar from burning. After a few minutes, you will hear the popcorn start to pop. Keep shaking until the popping has slowed to once every 2 to 3 seconds. Remove from heat, and immediately pour into large bowl. Cool, stirring occasionally to break up clumps. Serve warm.