For sauce:
heat olive oil and saute onion and garlic. Puree tomato and add
to onions, add chili powder and cumin, salt and pepper and simmer for
20 mins. Add water (1/4 cup) if needed to thin. Divide sauce into three
portions.

Bring chicken broth and chicken with peppercorns and bay
leaf to a boil. lower heat and simmer for 10-15 mins until
chicken is cooked through and no longer pink. Remove chicken
from broth and let cool. shred chicken with two forks or with fingers,
add 1/2 cup sauce and 1 4 oz can diced green chilies.

Heat cannola oil over high heat and briefly saute each tortilla
removing to paper towels to drain. Dip tortillas in 1/3rd sauce mixed with a
little water and add 1/4 cup chicken filling to lower portion, roll up tightly and place
seam side down in a 13 x 9 inch dish into which one portion of sauce
has been placed and swirled to coat.

Pour remaining 1/3rd sauce over top, sprinkle with grated cheese
and bake at 375 for 20 - 30 mins. Serve with black beans and over
white rice if desired. Sprinkle with finely chopped cilantro if desired