Mix all the CHORIZO ingredients together in a bowl until well combined. Set aside.
CHILI:
Heat 1 TBSP of the oil in a dutch oven or large pot over medium-high heat. When the oil is hot add the chorizo to the pot and cook, while breaking up the chorizo, until browned, about 5 minutes. Transfer the cooked chorizo to a plate, leaving any fat in the pot.
Keep the pot over medium-high heat and add the other 1 TBSP of oil to the pot. Add the chicken thighs skin-side down. Cook until the chicken skin is browned, about 6 minutes then flip the chicken thighs and cook and additional 4 minutes. Transfer the chicken to the plate with the chorizo and set aside.
Add the tomatoes, onion, paprika, cumin, and 1/4 tsp salt to the pot and cook, occasionally stirring and breaking up the tomatoes, for about 5 minutes.
Add the water to the pot and use a wooden spoon or spatula to scrape the bottom of the pot to release any stuck on bits.
Return the chicken and chorizo back into the pot then bring to a boil.
Cover the pot and reduce the heat to medium-low. Simmer until chicken is very tender, about 45 minutes.
Transfer the chicken thighs to a plate and use two forks to shred the meat discarding any skin and bones.
Stir the shredded chicken back into the pot and increase the heat to medium. Continue to cook the chili over medium heat, uncovered, stirring occasionally, about 30 more minutes or until chili thickens.
Season the chili with additional salt & pepper to taste.
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