Preheat your oven to 375°F (190°C). Grease your baking dish with a little cooking spray or butter.
In a large mixing bowl, combine the sliced hot dogs, canned chili, and half of the shredded cheddar cheese. Mix well.
In another bowl, whisk together the corn muffin mix, milk, beaten egg, garlic powder, onion powder, black pepper, and salt until smooth.
Pour the chili and hot dog mixture into the greased baking dish, spreading it out evenly.
Pour the corn muffin mixture over the chili and hot dog layer, spreading it evenly.
Sprinkle the remaining cheddar cheese on top of the casserole. If desired, add diced onions for extra flavor.
Bake in the preheated oven for 25-30 minutes or until the top is golden brown and the center is cooked through. A toothpick inserted in the center should come out clean.
Remove from the oven and let it cool for a few minutes before serving.