In a small bowl, whisk together the chili powder, sugar, and salt. Pour out onto a flat plate.
Wet the rims for two margarita glasses and dip in the chili sugar and salt mixture.
Add ice to the glasses.
Combine all liquid ingredients in a cocktail shaker.
Shake and pour into the two prepared margarita glasses filled with ice cubes.
Garnish each margarita with a cherry and serve.