These used to be a store in the mall here that had peanuts covered in chili power.

I was in New Orleans last year, and one of their specialities seemed to be peanuts boiled in their shells in chilli-flavoured water. They were sold still in their shells, so you'd open these peanuts and find chilli nuts inside. But I have to say that shelling them first, then covering them in chilli, sounds like a more obvious way of doing it...

Peter