Pat chicken thighs dry and rub with annatto/achiote paste (or sprinkle annatto powder), smoked paprika, cumin, 1 tsp salt, and 1/4 tsp black pepper. Heat 1 tablespoon olive oil in a large ovenproof skillet or Dutch oven over medium-high heat. Sear chicken 2–3 minutes per side until golden but not fully cooked. Transfer chicken to a plate.

Simmer

Add the smashed garlic and bay leaf to the skillet and cook 30 seconds. Pour in 2 cups chicken broth, scraping up browned bits. Return seared chicken to the pan, bring to a simmer, cover, and reduce heat to low. Simmer gently 20–25 minutes until chicken is cooked through (internal temp 165°F / 74°C). Remove chicken to a bowl and reserve 1/2 cup cooking liquid. Discard bay leaf.

Shred

When cool enough to handle, shred chicken with two forks or use hand mixers for 20–30 seconds for fine shreds. Set aside in a bowl and keep warm. Reserve the reserved cooking liquid to fold into mole sauce if needed.

Mole Sauce

Toast and Rehydrate Chiles

On a dry skillet over medium heat, toast ancho and pasilla/guajillo chiles for 20–30 seconds per side until fragrant (do not burn). Transfer to a heatproof bowl and pour enough hot water to cover. Let soak 15 minutes until softened, then remove stems and seeds and roughly chop. Reserve 1/4 cup of the soaking liquid.

Char Vegetables

Heat 1 tablespoon vegetable oil in a skillet over medium-high heat. Sear the quartered tomato and onion, cut sides down, until charred and softened, about 4–6 minutes. Add 3 garlic cloves and cook 30–45 seconds until fragrant. Remove from heat.

Blend Mole

In a blender, combine rehydrated chiles (drained but keep 1–2 tbs soaking liquid if blender is thick), charred tomato, charred onion, garlic, 1 tablespoon peanut butter, cocoa powder, toasted sesame seeds, ground cinnamon, ground coriander, brown sugar, chipotle in adobo, 3/4 tsp salt, and 1 tablespoon lime juice. Add 1/4–1/2 cup water or reserved chicken cooking liquid to help blend to a smooth, thick sauce. Blend until completely smooth, scraping down sides as needed.

Simmer Mole

Return the blended sauce to a saucepan. Simmer gently over low heat for 8–12 minutes, stirring frequently to avoid sticking. Taste and adjust seasoning — add up to 1/4 tsp more salt, a pinch more sugar for balance, or a splash of water to thin. If sauce tastes too bitter, a touch more brown sugar helps.

Finish Sauce

Stir remaining tablespoon of peanut butter into the simmering sauce for richness and cook 1–2 minutes. If desired, whisk in up to 2 tablespoons of reserved chicken cooking liquid to reach a saucy consistency suitable for coating shredded chicken. Keep warm.

Assembly & Garnish

Coat Chicken

Add the shredded chicken to the warm mole sauce and toss to coat evenly. Heat together over low for 2–3 minutes so flavors marry. Adjust salt and lime to taste (reserve some lime for serving).

Warm Tortillas

Warm a dry skillet or comal over medium-high heat. Lightly brush both sides of each tortilla with the 1 teaspoon oil. Warm tortillas 20–30 seconds per side until pliable and slightly charred. Keep wrapped in a clean towel to stay warm.

Assemble Tacos

Divide the mole-coated shredded chicken among the 8 tortillas (about 3–4 oz chicken per taco depending on portion). Top each taco with crumbled queso fresco, thinly sliced red onion, chopped cilantro, and optional pickled jalapeños and avocado slices. Serve with lime wedges.

Optional Finish

For extra smoky flavor, briefly smoke the shredded, sauced chicken on a grill using indirect heat and wood chips for 6–8 minutes, or use a smoking gun to impart smoke before serving.