In a large pot, heat olive oil over medium heat. Add chopped onion and minced garlic, sauté until softened.

Add the chicken thighs, oregano, cumin, chili powder, smoked paprika, salt, and pepper. Stir to coat the chicken.

Pour in chicken broth and water, add bay leaves. Bring to a boil, then reduce heat to low and simmer for 1.5 hours until chicken is tender.

Remove chicken from the pot and shred it using two forks. Set aside.

Strain the broth and reserve it. Blend the remaining solids until smooth, then return to the pot with the reserved broth.

In a skillet, heat a tortilla, add shredded chicken, and top with diced onion and cilantro. Fold the tortilla.

Serve tacos with the broth on the side for dipping and lime wedges.