Make the spice blend: In a small bowl, combine chili powder, cumin, garlic powder, onion powder, paprika, oregano, salt, pepper, sugar, and cayenne. Set aside.
Bloom the spices: In a cold skillet, add ground beef and the spice blend. Pour in 1/2 cup water. Use a potato masher or firm spatula to break the beef into very fine crumbles. Turn heat to medium.
Simmer and crumble: Cook for 5–6 minutes, stirring and mashing constantly to keep the texture fine. The beef will release juices and the spices will bloom in the moisture.
Add slurry: Whisk cornstarch with 1/2 cup water until smooth. Stir it into the pan along with vinegar (and tomato sauce, if using). Reduce heat to medium-low.
Cook to saucy: Simmer 5–8 minutes, stirring often, until the liquid thickens and clings to the beef. Add a splash of water if it gets too dry—you want a moist, spoonable mixture.
Taste and adjust: Add a pinch more salt for pop, a squeeze of lime for brightness, or a sprinkle of chili powder if you want more warmth.
Serve: Spoon into warm taco shells, tortillas, or over chips. Top with shredded lettuce, cheddar, diced tomatoes, and hot sauce for the full vibe.
Start with water: Add liquid before the pan gets hot so you can mash the beef super fine.
Use a masher: A potato masher or meat chopper creates those tiny crumbles you expect.
Low and slow finish: Gentle heat helps the cornstarch thicken and the spices meld without drying out.
Don’t drain too early: The moisture carries flavor. Let it reduce to a saucy consistency instead.