Dead Horse Ranch Red Chile Enchiladas

Source: Gourmet - May 2001

Red Chile Sauce
3 ounces dried whole New Mexico chiles
4 cups boiling water
2 tablespoons fine dry bread crumbs
1 1/2 tablespoons vegetable oil
1 garlic clove, minced
1 teaspoon dried oregano, crumbled
1 tablespoon cider vinegar
2 teaspoons salt

Enchiladas
3 large onions, chopped (4 cups)
3 tablespoons olive oil
12 (5-inch) white or yellow corn tortillas
3/4 pound white sharp Cheddar, coarsely grated (5 cups)
1 (6 ounce) can pitted black olives, sliced

Red Chile Sauce: Rinse chiles and split open, discarding stems, seeds, and ribs.

Heat a dry well-seasoned cast-iron skillet over moderate heat, then toast chiles in batches, turning them, about 30 seconds total. Transfer to a heatproof bowl and pour boiling water over them. Cover bowl and soak chiles, stirring occasionally, until softened, about 15 minutes.

Reserve one fourth of soaking liquid, then pur