Spicy pepper in pan in South American country (8)

I believe the answer is:

chipotle

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'spicy pepper' is the definition.
I know nothing about this answer so I can't tell whether it can be defined by this definition.

'pan in south american country' is the wordplay.
'pan' becomes 'pot' (both can mean a cooking vessel).
'in' is an insertion indicator.
'south american country' becomes 'Chile' (country in South America).
'pot' put inside 'chile' is 'CHIPOTLE'.

'in' acts as a link.

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I've seen this clue in The Guardian.

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