1In medium bowl, soak chiles in water about 20 minutes. (Do not drain.)
2In 6-quart Dutch oven or saucepan, heat oil over medium heat. Add onion and garlic; cook 1 to 2 minutes, stirring constantly, until onion is crisp-tender. Place in blender; add chiles in water. Cover; blend on high speed about 1 minute or until smooth.
3Place strainer over same Dutch oven; pour mixture from blender into strainer. Discard solids. Cook uncovered over medium heat 5 to 10 minutes, stirring occasionally, until flavors are blended.
4Add remaining ingredients. Heat to boiling. Reduce heat; cover and simmer about 20 minutes, stirring occasionally, until flavors are blended. Remove bay leaves and parsley before serving.