Choose the avocados carefully: They should give slightly when gently pressed but shouldn't feel mushy. An underripe avocado won't mash properly and an overripe one can have brown spots and an off flavor.
Taste the chili first: I always do this before deciding how much to add. I've found that two peppers that look almost identical can have very different levels of heat.
Add the avocado last: I prep everything else first and add the avocado just before mixing. It spends less time exposed to air and I find it easier to control how chunky the finished guacamole is.
Don't over-mash: Use a fork or potato masher and stop while there are still obvious pieces of avocado. You can always mash it more, but you can't put the chunks back.
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