In 3-quart saucepan, cook beef, onion, and pepper over medium-high heat about 8 minutes, stirring occasionally until beef is brown. Drain.
Stir in remaining ingredients except beans, cheese, and sour cream. Heat to boiling. Reduce heat to low, cover and simmer 1 hour, stirring occasionally.
Stir in beans. Heat to boiling. Reduce heat to low, simmer uncovered about 20 minutes, stirring occasionally, until desired thickness. If chili seems too thick, add water or tomato juice.
Ladle into bowls and top with cheddar cheese and sour cream.