Red Chili is another favorite of ours during the cold or rainy season...My husband and I have worked together on this one...We like to make chili dogs in buns or flour tortillas with this chili...It is great with Grated Cheese and Chopped onion on top, I like the crunch of the fresh onions...Makes Great Huevos Rancheros too..
1. Heat the olive oil in a Dutch Oven over high heat. Stir in the onion and garlic; cook and stir just until you start to smell the garlic, 2-3 minutes. Add the ground beef and cook, stirring frequently, until crumbly and no longer pink, about 5 minutes.
2. Remove from heat and stir in the green chili, tomato sauce, tomatoes, and water. Season with the chili powder, cumin, salt, oregano, and sugar. Place the mixture over medium heat and bring to a boil. Stir in milk, sour cream and velveta, stir till cheese has melted, if while cooking chili is a little too thick you may thin by using a little more milk a TBSP at a time till reaches right consistency. Reduce heat to low, cover and simmer for about 1 hour.
3. Stir often so the chili does not scorch. Remove the cover and stir in the beans. Replace the cover and continue cooking until fully heated through, about 15 minutes.