Poach chicken pieces until almost tender, about 15 minutes, in 1 quart of well-seasoned water, adding bay leaf, 2 garlic cloves, peppercorns, and salt. Let chicken cool in broth.
Saute onion until golden in hot oil in deep kettle or dutch oven. Add the tomatoes (do not blend tomatoes, just break them with your hands) and chiles. Season sauce with salt, black pepper, and oregano. Add 2 cups reserved chicken stock. Boil 5 minutes, add mashed garlic, and correct seasoning.
Place chicken in baking dish, pour all of the sauce over it, cover, and bake in 350 deg. oven for 15 minutes, until bubbly.
Serving Ideas : Serve with rice and green beans.
NOTES : A green onion, cucumber, and raw zucchini salad is wonderful with this dish.
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