In a large pot or dutch oven heat oil over medium. Add chopped tortillas and stir to coat in oil. Cook 1-2 minutes. Add onions, garlic, cilantro, cumin, and chili powder. Cook, stirring, until onions are translucent, about 3 minutes. Add bay leaves, tomatoes, chicken broth, and salt. Bring to a simmer over medium-low and add chicken. Simmer covered 20-30 minutes, stirring occasionally, until chicken is cooked through.
Remove chicken from pot to cutting board. Remove bay leaves. Shred or chop chicken into bite size pieces. Return chicken to pot. Add lime juice and stir.
Check seasoning and add cayenne or chipotle for heat, if using, and more salt if needed. Serve topped with tortilla chips, cheese, sour cream, avocado, hot sauce, lime and cilantro.