Steps:
- Tear the chile into small pieces and place them in a spice grinder. Grind the chile to a powder.
- Melt the butter in a large heavy skillet over medium-high heat. Add the shallots and thyme and sauté for 3 minutes, or until the shallots are soft. Add the chile powder and stir. Add the bread crumbs and cook for 5 minutes, or until the crumbs are golden brown. Remove from the heat and season to taste with salt and pepper. Let the crumb topping cool.
- Preheat the oven to 400°F.
- Heat the olive oil in a large heavy skillet over high heat. Season the lamb racks all over with salt and pepper. Working in batches, add the lamb racks to the skillet, rounded side down. Sear for 6 minutes, or until brown. Transfer the racks to a large rimmed baking sheet, seared side up. Spread 1 1/2 teaspoons of the mustard over each rack. Press the crumb topping into the mustard.
- Roast for 20 minutes for medium-rare, or until desired doneness. Remove from the oven and let rest for 5 minutes before slicing into chops. Serve topped with jalapeño jelly, if desired.
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