A note on pronunciation: since this is a New Mexican recipe that has been passed down through generations that spoke only Spanish, I've decided to keep the original spelling rather than the Americanized spelling "chili," but it is the same thing.
1/2 pound bacon, fried & crumbled
1 onion, chopped
2 garlic cloves, minced
5 1/2 pounds chicken breasts, diced into 1 inch pieces
1 cup water
1/2 cup green chili, chopped (vary to taste)
1 bag Frito Lays chips
1 block of your favorite cheddar (I prefer Cabot extra sharp)
Cut the bacon into bite sized pieces and cook completely in a 2 quart or larger sauce pan; remove from pan, set aside and empty all of the grease except for a thin pan coating
Sauté the onion and garlic in in the bacon pan
Add the chicken and cook until done, ~ 3 min.