It is incredibly easy to toast chili pods in the oven. Simply preheat your oven to 350°F, and place the chili pods on a baking sheet. Pop into the oven for about 5 or 6 minutes, and you will be able to tell they are done when they begin to puff up.
Remove from the oven, and allow to cool slightly until you can handle them without being burned. Pull off the stem, remove the seeds, and gently tear into small pieces.
Then grind them in a spice grinder or coffee mill, until they take on a ground spice appearance. In a spice grinder this should take anywhere between 30 to 60 seconds.