Heat vegetable oil in a deep-fryer or large saucepan to 375 degrees F (190 degrees C).
Place onion, green bell pepper, egg, garlic, taco seasoning, baking powder, peanut oil, cumin, salt, and cayenne pepper in a food processor. Puree until smooth.
Pour pinto beans into mixture and pulse until pinto beans are chopped and integrated, but not smooth.
Transfer bean mixture to a large bowl; stir hot sauce into mixture.
Stir enough bread crumbs into mixture to form a dough that holds together, but isn't sticky.
Form dough into quarter-sized balls.
Deep-fry in hot oil until falafel are deep brown, about 3 to 5 minutes.
