Season the beef generously with salt and pepper on both sides, then heat the oil in a large pot and sear the beef in batches, so as to not overcrowd the pot. Once seared, set the beef aside.
Add the 16 cups of water to the pot and bring to a boil, then add the dried chiles and tomato, and allow this to come to a boil.
While this boils, lightly toast the cumin seeds, peppercorns, cloves, cinnamon stick, sesame seeds and dried oregano in a small pan over medium heat for about 1 minute, stirring constantly so that the ingredients don’t burn and become bitter. Once toasted, add them to a blender.
Next, lightly char the ginger, onion and garlic in the same pan for a few minutes, then add them to the blender as well.
Once the dried chilies and tomatoes are soft and cooked through, add them to the blender, along with 1 cup of the cooking liquid, and blend until completely smooth.
Add the seared beef back to the pot of water, then strain the chili mixture into the pot and stir. Add the bay leaves, then allow this to come to a boil. Once it reaches a boil, lower the heat to medium-low and simmer for 3–4 hours covered, or until the meat is fork tender.
Once tender, remove the lid from the pot and add the remaining 2 cups of water if needed to thin out the broth. Taste for seasoning and adjust accordingly, using the 1/2 tsp of sugar if needed to balance out the acidity and flavors.
Transfer the beef to a cutting board or big bowl, shred it with a fork, then return it back to the pot.
Serve the birria with chopped onion, cilantro, rice, warm tortillas and lime wedges. Enjoy!