Step 1

Preheat an oven to 350 degrees F (175 degrees C).

Step 2

Mix the chili and enchilada sauce together in a small saucepan over medium-low heat, stirring occasionally as it simmers.

Step 3

Heat the vegetable oil and chili powder together in a small skillet over medium heat. Gently lay a tortilla in the hot oil and cook until the tortilla starts to puff. Remove with a spatula and place on a plate. Immediately sprinkle about 1/4 cup Cheddar cheese and 1 tablespoon chopped onion down the center of the tortilla; roll the tortilla tightly around the mixture and place, seam-side down, into the bottom of a 9x13-inch baking dish. Repeat this process until all the tortillas are used.

Step 4

Sprinkle about 2/3 of the remaining Cheddar cheese over the rolled enchiladas. Pour the warm chili mixture evenly over the enchiladas. Scatter the remaining Cheddar cheese over the layer of the chili mixture.

Step 5

Bake in the preheated oven until the top is bubbling, 20 to 25 minutes.