Melt fat in electric skillet. Add hamburger, onion, salt, and pepper. Cook over low heat until meat is lightly browned. Do not burn onion. Stir in tomato juice, tomato soup, sugar and chili powder. Simmer until thickened, stirring frequently.
Cook spaghetti as directed and drain. Add to meat mixture in electric skillet. Just before serving, cover meat and spaghetti mixture with Velveeta cheese and heat until cheese starts to melt. Can be served from skillet with crackers and relishes for a complete meal.