Preheat soup pot over medium heat. Saute the onions, chilies and bay leaves for about 7 minutes, until softened. Add garlic and saute 3 minute more.
Add potatoes, water and salt. Cover and bring the heat up to boil. Once boiling, lower heat a bit to a slow simmer and cook until potatoes are tender – usually 15 to 18 minutes.
Use an immersion blender to puree half the soup, or transfer half of the soup to a blender or food processor and puree. Be sure to let the steam escape in between pulses so that the steam doesn’t build up and explode all over you. But get an immersion blender, it is so worth it. Return pureed soup to pot and mix.
Add cilantro and lime and taste for salt. Grate a little bit of beet in, using a microplane grater if you’ve got one. I used maybe a tablespoon, maybe a little less. Let sit for at least 5 minutes for the flavors to blend. Serve!