Saute onion and garlic in oil until soft and slightly browned. Add spices and cook until fragrant.
Add tomato sauce, water, sugar and simmer 10 minutes.
Add chipotle peppers to blender or food processor right out of the can, grind, then add hot tomato mixture to blender and blend until smooth.
Place chicken pieces in greased, glass dish. Pour sauce over chicken and cover dish with foil.
Bake for 45-60 minutes at 350 degrees or until chicken is no longer pink.
During last 5 minutes in oven, remove foil and top chicken with grated cheese and place back in oven until melted.
Serve cooked chicken with sliced avocado, sliced black olives and sour cream, whatever suits your fancy!!