Heat a large Dutch oven over medium high heat. When it is hot, add the oil and diced onion. Cook for 3 minutes, stirring often with a wooden spoon. Add the garlic, jalapeno, yellow and red peppers and continue to cook, stirring often, for an additional 4 minutes. Add the chili powder, cumin and salt and stir until the mixture is fragrant. Add the lentils, beer, tomatoes and 1 1/4 cup water and stir to combine. Bring to a simmer and reduce the heat to medium low. Cover the pot and simmer for 25 minutes. Uncover the chili and add the hominy. Continue to cook uncovered until the chili has thickened slightly and the lentils are cooked through, about 15 minutes more. Serve topped with the cilantro, avocado and cotija cheese. Finish with a squeeze of lime if desired.
To soak your lentils, place the picked-through lentils in a fine mesh strainer and rinse them well. Place them in a medium bowl and cover them with water so they are fully submerged by 1 inch of water. Cover the bowl with plastic wrap and refrigerate for at least 8 hours or up to 14 hours. Drain and rinse the lentils again before using.
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