Place the chicken in a large, shallow dish. Combine the vinegar, soy sauce, garlic, bay leaves and ground red pepper in a bowl and pour it over the chicken, tossing to coat. Cover and refrigerate for 4 hours, stirring occasionally.
Transfer the chicken to a heavy skillet; add the water and bring to a boil. Reduce the heat and simmer, uncovered, for 10 minutes, stirring occasionally.
Remove the chicken with a slotted spoon and set aside. Bring the liquid to a boil and boil, uncovered until reduced to about ½ cup. Stir in the chili and chicken. Simmer 1 or 2 minutes or until thoroughly heated.
Serve in bowls with the shredded cheese on top. Heat Scale: Mild
