Combine ground beef, two-thirds of diced onions, peppers and garlic in frying pan and saute until ground beef is browned. Drain fat.
Add spices, sugar, tomato sauce, tomato paste and water. Stir to combine and simmer for 30 minutes.
Lay hotdogs on the bottom of a 7x9-inch casserole dish.
Cover with chili.
Spread cheese over chili and top with remaining onion.
Bake at 400 degrees for about 15 to 20 minutes or until hot and bubbly.