Preheat pellet grill or smoker to 250℉ with your choice of pellets or wood.
Season the chuck roast. Rub about 2 tablespoons of hot sauce on all sides of the chuck roast as a binder (optional). Season all sides of the chuck roast with the Texas rub. Then sprinkle on cumin seed.
Smoke the chuck roast. Place the beef roast directly on the grill grates, and close the grill lid. Smoke at 250℉ for 3 hours.
Rest and cube the smoked chuck roast. After 3 hours, transfer the roast to a cutting board to rest for about 10 minutes. Then cut into cubes that are about 1" in size.
Char the vegetables. While the roast is resting, add about ½ tablespoon of oil to a heated griddle or skillet, and brown the quartered onion and halved jalapeno pepper until they have a nice char on all sides. When onion and jalapeno are almost done, add the dried peppers to the griddle or skillet to toast for about 1 minute on each side. *While the vegetables are charring, preheat the oven to 300℉.
Make the braising liquid. Add the charred veggies, peppers, and cubed beef to a dutch oven or other large pot. Pour in beef stock and just enough water to almost cover the beef – for us that was about 1½ cups of water. Add the remaining braising ingredients to the pot including lime juice, ground cumin, paprika, oregano, garlic powder, and chili powder.
Braise the smoked beef. Cover the pot with aluminum foil, and place in a 300°F oven to braise for about 3 hours, or until the meat is fall apart tender. *Note – We uncovered the pot for the last 1 hour of cooking time, but use your best judgement based on the tenderness of your roast after about 2 hours of braising.
Transfer beef chunks to a separate bowl. When the Chile Colorado beef nuggets are done braising, use a slotted spoon or spider strainer to remove the chunks of beef from the braising liquid and transfer to a separate bowl.
Blend the Chile Colorado sauce. As you’re removing the beef chunks, separate the pieces of onion, jalapeno, and peppers and add to a large blender cup. When the beef has been separated out, use a spoon to skim off a good amount of the fat that has risen to the top of the pot. Then, add about 2 cups of the braising liquid to the blender cup with the veggies. Blend well until you have a smooth, thick sauce. *TIP – For a thinner sauce, you can add more of the braising liquid. See notes.
Add the beef to the blended sauce. Add the blended Chile Colorado sauce to the tender beef chunks. Stir to coat. *See notes for tip.
Serve the Chile Colorado. Serve like a beef stew with warm corn tortillas for dipping and/or with Mexican rice. You can also serve with sour cream, avocado slices, Cotija cheese, etc. Enjoy!