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Heat oil in a large skillet over medium heat. Add onion, and cook, stirring, until soft, about 3 minutes.
Add the chorizo (casings removed) and keep cooking about 8-9 minutes. Stirring from time to time.
While the chorizo is cooking place the tomato, serrano pepper and 1 cup of water in a saucepan and cook on medium heat until tomatoes and pepper are tender. After cooking, place the tomato and pepper with a 1/4 cup of the water in your blender and process until you have a smooth sauce. Set aside.
Once the chorizo has cooked add the nopales and stir.
Add the sauce and let it simmer for a few minutes just to let the flavors to blend. Adding more water if the food in the skillet becomes too dry. Season with salt and pepper.
Serve immediately with corn tortillas.