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MELT butter in small saucepan on medium heat. Add shallots and garlic; cook and stir 1 to 2 min. or until shallots are crisp-tender.
STIR in root beer. Return to boil; simmer until reduced by half. Stir in barbecue sauce and chile powder. Remove from heat.
HEAT oil in large skillet on medium heat. Add wings, in batches; cook 8 to 10 min. or until done, turning after 5 min. Drain on paper towels.
PLACE wings in large bowl. Add barbecue sauce mixture; toss to evenly coat wings.