1.Preheat oven to 200°C/400°F. Line a large shallow baking dish with baking paper.
2.Combine chicken, sugar, oil, paprika, garlic powder and onion powder in a large bowl. Transfer to baking dish.
3.Bake chicken for 40 minutes, turning once, until golden and cooked through.
4.Meanwhile, to make red capsicum dip, process remaining ingredients until smooth. Season to taste.
5.Serve chicken with dip.
You could use chicken wings instead of the drumsticks. There should be plenty of space around the chicken so it browns well and cooks evenly. Divide the chicken between 2 dishes if necessary. You can make the dip a day ahead. Refrigerate until ready to use.