Crossword Genius

In Chile, we hear, it’s cold (6)

Ross

I believe the answer is:

chilly

I'm a little stuck... Click here to teach me more about this clue!

'in chile' is the definition.
'chilly' can be an answer for 'chile' ('chilly' can be a synonym of 'chile'). I am unsure of the 'in' bit.

'we hear it's cold' is the wordplay.
I cannot quite understand how this works, but
'cold' could be 'chill' (chill is a kind of cold) and 'chill' is found within the answer.
A single letter 'y' remains which might be clued in a way I don't understand.
This explanation may well be incorrect...

Can you help me to learn more?

(Other definitions for chilly that I've seen before include "Lacking warmth or feeling" , "Freezing" , "Without warmth" , "Of weather, cold and icy" , "(Of weather) bracing" .)

I've seen this clue in the Evening Standard.
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