3 pounds Beef -- ground or cubed

1/4 cup Olive oil

1 quart Water

2 Bay leaves

8 Dry chilie pods *OR*

6 tablespoons Chili powder

3 teaspoons Salt

10 Garlic cloves -- chopped

1 teaspoon Cumin

1 teaspoon Oregano

1 teaspoon Cayenne

1/2 teaspoon Ground black pepper -- fresh

1 tablespoon Sugar

3 tablespoons Paprika

1/4 teaspoon Cocoa (optional)

3 tablespoons Flour

6 tablespoons Cornmeal

In a six-quart pot, sear meat in hot olive oil, stirring constantly over high heat until grey, but not brown. Add water and mix well. Add bay leaves now, but remove and discard after 15 minutes of cooking. Simmer covered 1 1/2 to 2 hours, stirring occasionally. Add remaining ingredients, except for flour and cornmeal. Cocoa should be added now. Simmer, stirring frequently, for 30 minutes. Skim off any excess fat. Adjust seasonings and add flour and cornmeal blended with a little cold water to make a paste. Cook, stirring constantly to prevent sticking, until chili is the desired comsistency.