The recipe for churros - sweet fried snacks similar to doughnuts - caused explosions that showered the cooks with hot oil, causing burns.
Chile's supreme court found that injury had been inevitable for anyone who followed the printed recipe.
It ordered La Tercera to pay more than $163,000 (Â£104,000) to the victims.
The individual damages range from $279 to $48,000 to a woman whose burns were particularly severe.
The judgement comes seven years after readers were burned on the arms, body and face while trying out the recipe.
The court said the oil temperature mentioned in the recipe was too high, making an explosion likely when the mixture was put in the pan.
"The explosions were so violent that in some cases the splashes hit the ceiling and covered the person who was cooking," the court said.
"Faithfully following the recipe published in the newspaper, this damage could not have been avoided," it added.
The company which owns La Tercera has said it will respect the judgement, which upholds decisions by two previous courts.
Dusted in sugar or dipped in chocolate, churros are a popular treat in Spain and across Latin America.
Chilean newspaper La Tercera has been ordered to compensate 13 readers who suffered injuries when they followed a recipe it published.