Begin by removing the stems and seeds from your chili peppers, then tearing them into chunks, except for the arbol chiles, which can remain whole. Heat a cast iron skillet over medium heat and lightly toast the chiles to bring out their oils and intensify their flavor.
Add chiles to a large bowl and cover with 3 cups boiling water. Cover with saran wrap or lid and allow to peppers to steam while you move on to the next step.
Chop beef into 1-½ to 2" chunks, trim excess fat, then dry with paper towels, if needed. Season with salt, black pepper, and all-purpose flour. Heat 2 tablespoons of oil in a 6-quart Dutch oven, then sear meat in batches until browned. Add more oil as needed.
Remove meat from the Dutch oven and add diced onion. Add ½ cup of water to deglaze the pot, then saute onion over low heat for approximately 5 minutes. Add minced garlic and cook for an additional minute.
Return the meat back to the pot and turn off the stove. Add bay leaves, bouillon powder, oregano, chipotle powder, and cumin.
Add softened chiles to a blender. Strain the liquid and add enough to cover the chiles. Blend until smooth, then pour chile puree over the meat. Stir in the remaining chile liquid and the juice of one lime. Bring to a boil, then cover and transfer to a preheated 300F oven. Bake for 2-½ to 3 hours.
(optional) If you prefer to cook this chile Colorado recipe on the stovetop, just simmer over low heat, using a diffuser, for 2 hours or until the chili is thick and the meat is tender.
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Notes
See post for Instant Pot instructions.
Be careful not to burn them, as burnt chiles taste bitter.
If you prefer to cook this Chile Colorado recipe on the stovetop, just simmer over low heat, using a diffuser, for 2 hours or until the chili is thick and the meat is tender.
The foundation of Chile Colorado is the red chile sauce. Use good quality dried chiles like guajillo, ancho, and New Mexico chiles. These chiles provide a deep, smoky, and slightly sweet flavor.
Taste the chile liquid before adding it to the blender. If it's bitter, you can substitute an equal amount of water or chicken broth.
If necessary, strain the chile sauce through a fine mesh strainer to achieve a smoother consistency.
Taste the sauce as it cooks and adjust the seasoning. Sometimes a pinch of sugar is needed if the sauce is too acidic.
Store Chile Colorado leftovers in an airtight container in the refrigerator for up to 5 days or freeze for up to 3 months.