Kashmiri Chili Powder is simply dried, ground Kashmiri chiles. The Kashmiri chiles are red, long, slender, wrinkled chiles that produce a bright red powder prized for it's color and moderate heat. The chile has a slightly smoky flavor. This powder is used in Indian cooking in recipes that benefit from the color but don't necessarily want a lot of heat. The chili powder is frequently used in curries as well as some lentil dishes and soups.
You can find Kashmiri chili powder in most any Indian grocery store. You can also find it in specialty spice shops online as well as on Amazon.com: Kashmiri Chili Powder.
For bulk quantities of Kashmiri chile powder go to Woodlandfoods.com.
If you don't have Kashmiri chili powder then the best substitute is:
These are whole, dried, Kashmiri chiles.