Heat olive oil in a large pot over medium heat and sauté the onion until soft and translucent.
Add garlic, cumin, chili powder, smoked paprika, and oregano, stirring until fragrant.
Place chicken into the pot and lightly sear on both sides.
Pour in chicken broth, diced tomatoes, bay leaf, and hominy, then bring to a gentle simmer.
Cover and cook until chicken is tender and fully cooked.
Remove chicken, shred it with forks, then return it to the pot.
Season with salt and pepper and simmer uncovered to deepen flavor.
Serve hot with your favorite fresh toppings and a squeeze of lime.