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1
Add the can of tomatoes and the chipotle chiles to a food processor and pulse until smooth.
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2
Cook the bacon in a large Dutch oven over medium heat until crisp. Transfer the bacon to paper towel-lined plate and reserve 3 tablespoons bacon fat.
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3
Pat the beef dry with paper towels and season with salt and pepper.
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4
Heat 1 tablespoon of the reserved bacon fat in empty Dutch oven over medium-high heat until just smoking. Working in batches, brown the beef on all sides (use a second tablespoon of the reserved bacon fat for the second batch). Be sure not to overcrowd the pan or the beef will steam and not brown. Transfer the browned beef to a bowl and set aside.
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5
Add remaining tablespoon of bacon fat, onion, and jalapeno to empty Dutch oven and cook until softened, about 5 minutes.
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6
Stir in chili powder, cumin, oregano, and garlic and cook until fragrant, about 30 seconds.
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7
Stir in water, pureed tomato mixture, bacon, browned beef, and sugar and bring to boil.
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8
Reduce heat to low and simmer, covered, for 1 hour.
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9
Remove cover, skim fat from the surface and continue to simmer uncovered until meat is tender, 30 to 45 minutes.
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10
Ladle 1 cup chili liquid into medium bowl and stir in muffin mix; cover with microwave-safe wrap/waxed paper. Microwave until mixture is thickened, about 1 minute. Slowly whisk mixture into chili and simmer until chili is slightly thickened, 5 to 10 minutes. Season with salt and pepper before serving. Garnish with avocado and cheese if desired.
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11
The chili can be refrigerated for up to 3 days.
