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1. Lightly coat an unheated large saucepan or Dutch oven with nonstick cooking spray. Preheat over medium-high heat. Add oil; swirl to coat bottom of pan. Add onion, sweet pepper, and garlic to hot pan; cook for 8 to 10 minutes or until pepper is tender, stirring often. If necessary, reduce heat to prevent burning.
2. Add undrained diced tomatoes, tomato sauce, the water, the 4-1/2 teaspoons chili powder, the seasoning blend, cumin, and salt. Bring to boiling; reduce heat. Cover and simmer for 15 minutes. Stir in beans and mixed vegetables. Return to boiling; reduce heat. Simmer, uncovered, about 10 minutes more or until vegetables are tender. If desired, top individual servings with sour cream and/or cilantro and sprinkle with the 1/8 teaspoon chili powder.