The best method for removing some of the spice or heat out of chili is the addition of dairy. Adding sour cream, milk and plain yogurt can help tone down the spice.
Serving the spicy chili with bread or over rice can also help with heat levels. Rice works especially well in diminishing spice in a dish.
The addition of peanut butter can also tone down heat without altering the taste. Simply add 1 to 2 tablespoons of peanut butter to the cooking chili.
Acidic juices, including lime and lemon also are excellent methods of trimming back the heat in chili or other soups and stews.