Brown the ground beef in a large skillet over medium-high heat while breaking the meat up into small pieces with a spatula.
In a saucepan combine the tomato paste and water over medium heat. Stir until smooth. Add cayenne pepper, chili powder, salt, vinegar, and dried onion and stir. Add the minced jalapenos. Heat the mixture to boiling. Mix the 2 teaspoons of cornstarch with ¼ cup of cold water and pour into the sauce pan and stir. Reduce heat and simmer for 3 minutes or until the mixture has become thick. Remove from heat.
Once the beef has browned, drain off any excess grease. Add half of the refried beans to the beef. Slowly add 2 ½ cups of the tomato sauce mixture. Add half of the cheese and cook over low heat for 10 minutes, stirring constantly. Let simmer for 30 minutes. Spoon ¾ cup of the chili into each tortilla, add cheese and tomato sauce mixture as desired. Wrap up the tortilla.