Into a 6-quart, thick-bottomed Dutch oven, put onion-chili mixture, beef, bacon, tomatoes (break up the whole tomatoes with your fingers as you put them in the pot), water, lime juice and sugar. Heat the chili on medium high heat until it comes to a simmer. Then reduce the heat to low. Cover and cook for 1 1/2 hours.. Prepare the beef: Trim excessive fat from the meat this helps to reduce grease in the finished chili. Prepare the chiles: Remove chili pepper stems and seeds. Soften peppers by soaking in boiling water for 30 minutes. Remove the pepper skins. Slice peppers in half, place skin side down on a cutting board, and scrape off the flesh with a paring knife.
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Add remaining ingredients, with 1/2 cup of water for Quick Cook or 1 1/2 cups for Slow Cook. Bring to simmer, then adjust heat per step below: Quick Cook – 20 to 40 minutes, uncovered, on medium low heat so it’s bubbling gently; OR. Slow Cook – 1.5 hours to 2 hours, covered, on low heat so it’s bubbling very gently.. SEAR THE MEAT: Season the meat with a generous pinch of salt and pepper. Heat a large chili pot over medium-high heat. Add 1 tablespoon of oil to the pot and add a few pieces of meat at a time. Sear the meat on all sides, about 2-3 minutes and remove it to a plate. Repeat the process until all the meat is seared.