Step 1 Heat oil in a large saucepan over medium heat. Add bacon. Cook for 5 to 6 minutes or until crisp. Add mince. Cook, stirring with a wooden spoon to break up mince, for 15 minutes or until browned.

Step 2 Add onions, capsicums, garlic and chopped chilli. Cook for 5 to 6 minutes or until vegetables are soft. Add chilli powder. Cook, stirring, for 1 minute or until fragrant.

Step 3 Add tomatoes and 1 cup cold water. Bring to the boil. Reduce heat to mediumlow. Simmer, partially covered, for 30 minutes or until sauce has reduced slightly.