Inspect the dried chili peppers for uniform pods that are free from decay or mold. Discard any pods that have lost their color. Look for shiny skins with dark red, maroon, deep brown or black color.
Decide which recipe you'll be using. Different types of recipe will require different preparation for the chili pepper. Read the recipe directions to see if you need whole dried chili peppers, ground peppers, or rehydrated peppers.
Rinse the peppers with water or wipe with a paper towel to remove dust.
Prepare chili peppers for your recipe. If your recipe calls for the peppers to be reconstituted, place the peppers in a bowl and cover with very hot -- but not boiling -- water. Soak the chilis for a minimum of 30 minutes, then cut off the stems before using them in your recipe. If your recipe calls for ground chili peppers, cut the stem off and then grind the pod in a spice grinder.