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In Dutch oven, cook onion and garlic in butter over medium heat, stirring occasionally until onion is tender.
Add chicken broth, picante sauce, shredded chicken, bell pepper, pepper and bay leaves.
Bring to a boil. Cover; reduce heat to low. Simmer, stirring occasionally, 20 minutes.
Remove bay leaves.
In large skillet, heat oil over medium heat until hot.
Fry tortilla strips in oil until light golden brown. Drain.
Divide tortilla strips among 6 serving bowls; ladle soup over strips.
Top with shredded cheese and sour cream.