Chili Colorado is a classic Mexican stew that’s hearty and packed with flavor. It features tender chunks of beef simmered in a rich, red chili sauce made from dried chilies, garlic, and spices. The sauce is thick and vibrant, giving the dish its signature deep red color and a satisfying kick of warmth without overwhelming heat.
I love making Chili Colorado because it’s one of those dishes that feels like a big, comforting hug in a bowl. The slow-cooked beef becomes meltingly tender, soaking up all the spicy, smoky goodness from the sauce. When I make it, I always let it simmer a little longer to let those flavors marry perfectly—it’s worth the wait every time.
My favorite way to enjoy Chili Colorado is with warm tortillas and a side of rice or beans. It’s also great for dipping homemade crispy chips. It’s the kind of meal that brings people together around the table, perfect for sharing and enjoying with your favorite sides. Plus, leftovers taste amazing the next day, which is always a bonus in my book!
Key Ingredients & Substitutions
Beef chuck roast: This cut is perfect for slow cooking because it becomes tender and juicy. If you want a leaner option, try stew beef, but chuck has more flavor.
Dried guajillo and ancho chilies: They give the sauce its classic mild heat and rich color. If you can’t find them, substitute with mild dried New Mexico or pasilla chilies.
Beef broth: Provides depth and richness. You can swap with vegetable broth for a lighter version or add a beef bouillon cube if you’re short on broth.
Mexican oregano: Adds an earthy, slightly citrusy taste. Regular oregano works but use less because it’s stronger.
Vegetable oil or lard: I use oil for ease, but lard adds authentic flavor.
Mexican crema or sour cream: Adds creaminess at the finish. Greek yogurt is a nice, tangy substitute.
How Do You Make the Chili Sauce Smooth and Flavorful?
The chili sauce is the heart of this dish, so getting a smooth, rich sauce is key.
- Toast the dried chilies lightly: This releases their oils and adds smoky depth, but watch closely so they don’t burn—it only takes a minute or two.
- Soak in hot water: Softening the chilies makes blending easier and ensures a silky sauce.
- Blend with soaking water and spices: Use some of the soaking water to help blend into a smooth paste. Adding garlic, cumin, and oregano at this stage layers flavor nicely.
- Sauté the sauce before simmering: Cooking the blended sauce briefly in the pot intensifies flavors and gives the chili a richer taste.
These steps make the sauce thick, velvety, and packed with balanced flavor that clings beautifully to the beef.
Equipment You’ll Need
- Skillet or dry pan – I use it to toast the chilies and bring out their flavor.
- Heatproof bowl – for soaking the chilies in hot water.
- Blender – to blend the softened chilies into a smooth sauce.
- Large pot or Dutch oven – perfect for browning beef and slow cooking the stew.
- Wooden spoon or spatula – for stirring and scraping up browned bits.
- Measuring spoons and cups – to keep everything accurate for the spices and liquids.
Flavor Variations & Add-Ins
- Swap beef for pork or chicken for a different twist; they cook just as tender in the sauce.
- Add a splash of tequila or vinegar to give the stew a bright, tangy flavor.
- Mix in some diced potatoes or carrots for extra veggies and heartiness.
- For a smoky kick, sprinkle a teaspoon of smoked paprika or chipotle powder.
How to Make Chili Colorado
Ingredients You’ll Need:
For The Beef and Sauce:
- 2 lbs beef chuck roast, cut into 1.5-inch cubes
- 3 dried guajillo chilies, stemmed and seeded
- 2 dried ancho chilies, stemmed and seeded
- 2 cups beef broth
- 1 medium onion, chopped
- 4 garlic cloves, minced
- 1 tsp cumin
- 1 tsp dried oregano (preferably Mexican oregano)
- Salt and pepper to taste
- 2 tbsp vegetable oil or lard
- 1 tsp smoked paprika (optional for extra smokiness)
- 1 bay leaf
For Garnish:
- Fresh cilantro, chopped
- Mexican crema or sour cream
- Corn kernels (optional, about ½ cup)
How Much Time Will You Need?
This recipe takes around 15 minutes for prep, plus 2 to 3 hours for slow simmering until the beef is tender. You can get everything ready quickly, and then just let it cook patiently to develop those rich flavors.
Step-by-Step Instructions:
1. Toast and Soften the Chilies:
Heat a dry skillet over medium heat and toast the guajillo and ancho chilies for 1-2 minutes each side until fragrant. Transfer them to a bowl and cover with hot water. Let them soak for 20 minutes until soft.
2. Make the Chili Sauce:
Drain the chilies but keep about 1 cup of the soaking water. Blend the chilies with soaking water, minced garlic, cumin, oregano, and smoked paprika until smooth. This will be your rich, flavorful sauce.
3. Brown the Beef:
Season the beef cubes with salt and pepper. In a large pot or Dutch oven, heat vegetable oil over medium-high. Brown the beef in batches until every side is nicely seared. Remove the beef and set aside.
4. Cook the Onion and Sauce:
In the same pot, sauté the chopped onions until soft and translucent, about 5 minutes. Pour in the chili sauce and cook for 2-3 minutes, stirring gently to combine.
5. Simmer the Stew:
Return the beef to the pot. Add beef broth and bay leaf. Bring it all to a boil, then reduce heat to low. Cover and simmer gently for 2 to 3 hours until the beef is tender and the flavors have melded beautifully.
6. Final Touches and Serve:
About 30 minutes before the stew is finished, stir in corn kernels if using, and adjust salt and pepper to taste. Remove the bay leaf before serving.
Serve your Chili Colorado hot, topped with a dollop of Mexican crema or sour cream and fresh chopped cilantro. Enjoy it alongside warm corn tortillas or a bed of rice for a complete, satisfying meal.
Can I Use Frozen Beef for This Recipe?
Yes, you can use frozen beef, but make sure it’s fully thawed before cooking. Thaw it safely in the refrigerator overnight to ensure even cooking and the best texture.
Can I Make Chili Colorado Ahead of Time?
Absolutely! In fact, it tastes even better the day after simmering. Prepare the stew completely, cool it, and refrigerate for up to 3 days. Reheat gently on the stove before serving.
How Should I Store Leftovers?
Store leftovers in an airtight container in the refrigerator for up to 3 days. For longer storage, freeze portions in freezer-safe containers for up to 3 months. Thaw overnight in the fridge before reheating.
What Can I Substitute for Dried Chilies?
If dried guajillo or ancho chilies aren’t available, try using mild dried New Mexico or pasilla chilies. You can also use chili powder as a last resort, but the flavor won’t be as rich and authentic.