In a 5-quart Dutch oven or heavy saucepan, heat the oil over medium-high heat. In three batches, brown the beef well, removing each batch with a slotted spoon. Set aside. Add the onion and garlic to the pot and cook for 5 minutes, or until tender, stirring frequently. Stir in the chili powder, cumin, salt, and Tabasco sauce; cook for 1 minute. Add the water and chilies; bring to a boil. Return the beef to the pot.
Reduce the heat and simmer uncovered, 1-1/2 hours, or until the beef is tender. Serve the chili over rice with onion, cheese and sour cream, if desired.
