Taco Casserole

1 lb. ground beef
1 small onion, chopped
1 c. (8 oz. bottle) Ortega Thick & Smooth Taco sauce
3/4 c. water
1 can (4 oz.) diced green chiles
1 pkg. (1.25 oz.) taco seasoning mix
Tortilla chips
2 c. shredded mild cheddar cheese

Preheat oven to 375.  Grease 11x7-inch baking dish.  Cook beef and onion until beef is browned; drain.  Stir in taco sauce, water, chiles, and seasoning mix.  Cover over low heat for 3-4 minutes.  Layer half of the chips on the bottom of prepared baking dish.  Cover with half of meat mixture; sprinkle with 1 cup of cheese.  Repeat with remaining ingredients.  Bake for 20-25 minutes or until bubbly and cheese is melted.