MAKE THE CHILI BASE:
ADD THE CHILIES, WATER, GARLIC, ONION, AND BAY LEAVES TO A SAUCEPAN AND BRING TO A BOIL.
STIR OCCASIONALLY AND SIMMER FOR 15 MINUTES. REMOVE FROM THE HEAT AND TAKE OUT BAY LEAVES.
TRANSFER THE MIXTURE TO A BLENDER AND ADD THE SPICES AND SUGAR. REMOVE THE BLENDER CAP AND BLEND UNTIL SMOOTH.
MAKE THE POZOLE:
TRIM AWAY THE EXCESS FAT FROM THE PORK BUTT. PAT THE PORK DRY WITH A PAPER TOWEL AND THEN RUB IN THE SPICES.
ADD OIL TO A DUTCH OVEN AND SEAR THE PORK BUTT 4 MINUTES ON EACH SIDE.
ADD THE CHILI BASE TO THE PAN ALONG WITH THE CHICKEN BROTH AND BRING IT TO A SIMMER. SIMMER FOR 3.5-4 HOURS WITH THE LID SLIGHTLY AJAR. TURN THE PORK HALFWAY THROUGH COOKING TIME.
REMOVE THE PORK AND SHRED IT WITH TWO FORKS. ADD THE PORK BACK TO THE POT ALONG WITH THE HOMINY AND SIMMER FOR 20-30 MINUTES MORE.
ADD ADDITIONAL SALT AND PEPPER TO TASTE, AND SERVE WITH YOUR FAVORITE GARNISHES.