This recipe uses a simple browning-and-simmering method that develops rich flavor while keeping the preparation straightforward.

Step 1: Prepare the Pork Shoulder

Place the pork shoulder on a clean cutting board.

Trim away any unusually large pieces of excess surface fat, leaving some marbling for flavor.

Cut the pork into approximately 1-inch cubes.

Try to keep the pieces similar in size so they cook evenly.

Pat the pork dry with paper towels.

Step 2: Heat the Oil

Place a large Dutch oven or heavy-bottomed pot over medium-high heat.

Add 2 tablespoons of vegetable oil.

Allow the oil to heat until shimmering.

Step 3: Brown the Pork in Batches

Add a portion of the pork cubes to the hot pot.

Arrange them in a single layer without overcrowding.

Cook for approximately 5–7 minutes per batch, turning occasionally, until several sides develop a golden-brown crust.

The pork doesn’t need to be fully cooked at this stage.

Transfer the browned pork to a plate.

Repeat with the remaining pork.

Step 4: Sauté the Onion

Reduce the heat to medium.

Add the diced yellow onion to the same pot.

Cook for approximately 4–5 minutes, stirring occasionally.

The onion should become soft and translucent.

Use a wooden spoon to loosen some of the browned bits from the bottom of the pot.

Step 5: Add the Garlic

Stir in the minced garlic.

Cook for approximately 30 seconds.

The garlic should become fragrant.

Avoid burning it because burnt garlic can create bitterness.

Step 6: Add the Flour

Sprinkle 3 tablespoons of all-purpose flour over the onion and garlic.

Stir continuously for approximately 1 minute.

The flour should coat the aromatics and absorb some of the oil.

Step 7: Add the Red Chile Powder and Spices

Add 4–6 tablespoons of New Mexico red chile powder.

Sprinkle in the ground cumin, Mexican oregano, salt, and black pepper.

Stir continuously for approximately 30 seconds.

The spices should become fragrant.

If the mixture appears dry, add a small splash of chicken broth to prevent scorching.

Step 8: Gradually Add the Chicken Broth

Slowly pour a small amount of chicken broth into the pot while stirring.

Mix until the flour and chile form a smooth sauce.

Gradually add the remaining broth.

Continue stirring to prevent lumps.

Scrape the bottom of the pot to release the browned pork bits.

Step 9: Return the Pork to the Pot

Add the browned pork and any accumulated juices back into the pot.

Stir gently to combine.

Make sure the pork is mostly submerged in the red chile broth.

Step 10: Add the Bay Leaf

Place the bay leaf into the broth.

Stir gently.

Step 11: Bring to a Gentle Boil

Increase the heat until the broth begins bubbling.

Once it reaches a gentle boil, reduce the heat to low.

The caldo should maintain a slow, steady simmer.

Step 12: Simmer the Pork

Partially cover the pot.

Simmer for approximately 60–75 minutes.

Stir occasionally to prevent the flour-thickened broth from sticking.

During this time, the pork will begin to soften and the chile broth will develop deeper flavor.

Step 13: Prepare the Potatoes

While the pork simmers, wash the Yukon Gold potatoes.

Peel them if desired.

Cut them into approximately 1- to 1 1/2-inch chunks.

Try to keep the pieces similar in size.

Step 14: Prepare the Carrots

If using carrots, peel and slice them.

Set aside until the pork has begun to soften.

Step 15: Add the Potatoes and Carrots

After the pork has simmered for approximately 60–75 minutes, add the potatoes and optional carrots.

Stir gently.

Add some of the reserved water if needed so the vegetables are mostly submerged.

Step 16: Continue Simmering

Partially cover the pot again.

Simmer for approximately 25–35 minutes.

Stir occasionally.

The potatoes should become fork-tender, and the pork should be tender enough to pull apart easily.

If the pork remains tough, continue cooking until it softens.

Step 17: Adjust the Broth Consistency

Check the amount of liquid.

For a soupier caldo, add more chicken broth or water.

For a thicker consistency, mash a few cooked potato pieces against the side of the pot.

Stir the mashed potatoes back into the broth.

Step 18: Remove the Bay Leaf

Locate and remove the bay leaf.

Discard it before serving.

Step 19: Add Vinegar or Lime Juice

Stir in 1 tablespoon of apple cider vinegar or fresh lime juice.

The acidity brightens the rich chile broth.

Step 20: Taste and Adjust

Taste the caldo.

Add additional salt or black pepper if needed.

If you want a stronger chile flavor, mix a little additional red chile powder with hot broth, stir it into the pot, and simmer briefly.

Step 21: Garnish and Serve

Ladle the hot caldo into serving bowls.

Top with chopped fresh cilantro and finely diced white onion.

Serve with fresh lime wedges and warm flour or corn tortillas