Using a medium saucepan or dutch oven, heat the oil over medium heat.
Add the onion to the hot oil and saute it over medium heat for 5 or 6 minutes until it is softened and golden brown.
Add the garlic, chili powder, cumin, coriander, and sugar to the onions. Stir for about a minute.
Add the chicken, and stir for another minute or two, coating the chicken with the spices.
Add the tomato sauce and water and bring the mixture up to a simmer. Continue to simmer for about 10 minutes, stirring occasionally.
Using a mesh strainer, strain the mixture into a bowl. Try to get as much liquid into the bowl as possible.
Set the bowl with the liquid sauce to the side. Put the chicken into a medium bowl and chill it in your fridge for a half hour.
Have a nice glass of malbec.
When the chicken is cooled, add the chiles and 8 ounces of grated cheese to the bowl and mix.
Final Assembly
Pre-heat your oven to 400 ºF.
Spread about half of the sauce evenly into the bottom of a 13 inch by 9 inch baking dish.
Spread about 1/2 cup of chicken mixture into the center of each tortilla. Roll the tortillas tightly and put them into the baking dis with the seam side down.
Spread the rest of the sauce over the tops of the tortillas. Sprinkle the last 4 ounces of cheddar cheese over the sauce.
Cover the baking dish with aluminum foil and bake for about 25 minutes.
Notes
I use leftover rotisserie chicken and shred it for this recipe. You can use raw chicken and cook it in the sauce, just trim the chicken pieces and cut them into 1/4 inch wide strips. I find thighs work best for enchiladas.