Step 1: Brown the beef finely - Add the ground beef to a saucepan over medium heat. Use a spoon to break it up very well as it cooks. You want the texture to be small and crumbly, almost like tiny bits rather than big chunks. This is what gives hot dog chili its classic spoonable texture. Cook until the beef is no longer pink.
Step 2: Add the onion and aromatics - Stir in the finely chopped onion and cook for about 3 to 4 minutes until it softens and melts into the beef. Add the garlic powder and stir to coat everything evenly. This is where the base flavor starts to build and your kitchen starts to smell like something good is coming.
Step 3: Build the chili flavor - Stir in the tomato paste, chili powder, smoked paprika, cumin, sugar if using, salt, and pepper. Let everything cook together for about 5 to 6 minutes, stirring often. This step helps the tomato paste caramelize slightly and lets the spices bloom so the flavor gets deeper and richer.
Step 4: Make the onion and parsley topping - While the chili finishes, finely chop the parsley and the small red onion. Add them to a bowl with the juice of the lime and a pinch of salt. This fresh topping cuts through the richness of the chili and adds a bright pop of flavor.
Step 5: Grill the sausage - Grill the hot dog sausages on a grill pan or outdoor grill for a few minutes until heated through and lightly charred. This little bit of char adds a lot of flavor and makes the whole thing feel like a cookout, even if you are standing in your kitchen.
Step 6: Assemble the chili dogs - Cut the hot dog buns in half and place the sausages inside. Spoon the hot dog chili generously over each one. Sprinkle with the onion and parsley mixture, squeeze over a little extra lime if you like, and finish with a drizzle of yellow mustard. Serve warm and do not be surprised if everyone asks for seconds.