Heat oven to 350°F. Grease cookie sheet.
Lightly spoon flour into measuring cup; level off. In large bowl, combine flour, sugar, baking powder, salt and ground red pepper; mix well. With pastry blender or fork, cut in butter until mixture resembles coarse crumbs. Beat in eggs and green chiles.
Shape dough into two 10-inch logs. Place on greased cookie sheet; flatten logs until 3 inches wide.
Bake at 350°F. for 25 to 30 minutes or until golden brown. Cool 10 minutes or until completely cooled.
Cut logs into 1/2-inch-thick slices. Place, cut sides down, on same cookie sheet.
Bake at 350°F. for 12 to 15 minutes or until tops are slightly dry. Turn cookies over; bake an additional 12 to 15 minutes or until tops are slightly dry. Remove from cookie sheet. Cool 15 minutes or until completely cooled.
To serve biscotti, spread with cream cheese; top with jelly.