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Hatch Chile Compound Butter (Easy & Versatile)

Published: Aug 25, 2025 by Hatch Chile Head · This post may contain affiliate links · Leave a Comment

If you’re looking for a delicious way to bring Hatch Chile season into everything you cook—this is it.

This Hatch Chile Compound Butter is smoky, savory, and packed with roasted chile flavor. Whether you go with mild or hot Hatch chiles, the result is a buttery, melt-in-your-mouth condiment that levels up literally anything you spread it on.

I love slathering this on grilled corn, tossing it with roasted veggies, or melting a slice over a freshly grilled steak. It also freezes beautifully, so you can keep Hatch flavor going well past the season.

What Are Hatch Chiles?

If you’re new to Hatch chiles, they’re a special variety of green chile grown exclusively in the Hatch Valley of New Mexico. Known for their uniquely rich, earthy flavor and mild-to-hot heat levels, Hatch chiles are harvested from August through early September—and people go wild for them.

Roasting them brings out the smoky, sweet side of the peppers, which is exactly why they shine in compound butter.

Hatch Chile Compound Butter Recipe

Servings: Makes about ½ cup
Prep Time: 10 minutes
Chill Time: 1 hour
Total Time: 1 hour 10 minutes

Ingredients

  • 1 stick (½ cup) unsalted butter, softened
  • 2 Hatch Chile peppers, roasted, peeled, and finely chopped (mild or hot)
  • 1 small garlic clove, finely minced (optional)
  • Zest of ½ lime (optional for brightness)
  • ½ teaspoon kosher salt (adjust if using salted butter)
  • 1 tablespoon chopped fresh cilantro or parsley (optional)

Instructions

  1. Roast the Hatch Chiles
    Grill or broil whole Hatch chiles until the skins blister and char (about 5–8 minutes).
    Transfer to a bowl, cover, and let steam for 5 minutes.
    Peel off skins, remove stems and seeds, and finely chop the flesh.
  2. Make the Butter
    In a bowl, combine softened butter, chopped Hatch chiles, garlic (if using), lime zest, herbs, and salt.
    Mix until fully combined and smooth.
  3. Chill and Store
    For spreading: Transfer to an airtight container and refrigerate.
    For slicing: Spoon onto parchment or plastic wrap, shape into a log, and chill for at least 1 hour.
How to Make Compound Butter Hatch Chile

How to Store

  • Refrigerator: Up to 1 week
  • Freezer: Up to 3 months (pre-slice into coins before freezing for easy use)

How to Use It

  • Melt over grilled steak, salmon, or chicken
  • Slather on corn, baked potatoes, or crusty bread
  • Mix into mashed potatoes or roasted veggies
  • Toss with pasta or rice
  • Spread under poultry skin before roasting

Pro Tip: Make a double batch while Hatch chiles are in season and freeze one log for later!

Frequently Asked Questions

Can I use jarred or frozen Hatch chiles?

Yes! If you don’t have access to fresh Hatch chiles, use roasted and peeled frozen Hatch chiles (often sold in tubs or vacuum-sealed bags). Just make sure to thaw and drain them well before mixing.

How spicy is this?

It depends on the variety you choose. Hatch chiles range from mild to hot. If you’re unsure, start with mild and add a dash of cayenne if you want more heat.

Can I make this dairy-free?

Yes — use plant-based butter alternatives. Look for unsalted versions made with coconut oil or olive oil blends for the best flavor.

Can I use other peppers?

Yes, but the flavor won’t be quite the same. Anaheim chiles or poblanos are similar in texture but lack the depth of true Hatch chiles.

Hatch Chile Season Is Here!

Celebrate Hatch season while it lasts!
👉 Get roasting tips, recipes, and more at ihatchchile.com
Or visit your local grocery store to see if Hatch demos are happening near you!

Recipe used with permission from MealPrepOnFleek.com

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New Mexico Chile, also known as, Hatch Chile is grown and harvested in the Hatch Valley of New Mexico.

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