Tear the chilies in strips.

Pour two cups of boiling water over the chilies.

Let the chilies soak for 30 minutes.

Drain the chilies, reserving the liquid.

Set the drained chilies and reserved liquid aside.

Heat the olive oil in a heavy casserole dish.

Brown the beef cubes in the hot oil.

Add the chilies' soaking liquid to the beef.

Bring the mixture to a boil.

Add the bay leaves.

Reduce the heat and simmer for one hour.

Meanwhile, puree the remaining ingredients (chilies, garlic, cumin, oregano, paprika, sugar, salt, pepper) with a half cup of water (or more if needed) in a blender or food processor.

Add the chili puree to the meat.

Simmer for 30 minutes more, adding water as necessary to maintain desired consistency.