It's interesting to see all of the variants of my recipe, and some of you have some great ideas! There really is no substitute for green chiles from the Hatch region of New Mexico. Several companies, sadly, have been growing what they call "Hatch" but are from Texas, and have virtually no flavor. Bell peppers? Oh, my, no. That's like substituting ketchup for Tabasco sauce. The best frozen chiles are from Bueno (expensive) and Berridge Farms. You can find canned chiles with the "Hatch" brand in most Whole Foods stores, but as the one chef remarked, they will break down a lot faster than the fresh, so add them at the end of your sauce making, once the onions are cooked through.
If you become totally addicted to NM Green Chiles (I have other Green Chile recipes) I would recommend buying a bulk box of the fresh chiles in the Fall. They are shipped to your door. You roast them on your bbq, and (using gloves) peel off the charred skins. You can either chop them and freeze containers for later use, or you can keep the chiles whole and put them in freezer bags. I get them here, but there are several companies that ship Hatch chiles every year... http://www.hatch-green-chile.com
As for the potatoes, frozen will work, but if you have a food processor with a shredder, go for the fresh, because the pop that fresh has over frozen can't be beat!
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It's interesting to see all of the variants of my recipe, and some of you have some great...