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For the Spice Blend, mix chili powder, sugar, cinnamon, garlic powder and salt in small bowl. Set aside.
Cook ground beef and 1 cup of the onions in large saucepan on medium-high heat until beef is no longer pink; drain fat. Add Spice Blend, water and tomato sauce; bring to boil. Reduce heat to low; simmer, uncovered, 30 minutes, stirring occasionally.
Serve chili over spaghetti. Top with kidney beans, and remaining 1/2 cup onions. Sprinkle with shredded Cheddar cheese, if desired.