Place the potatoes in a Dutch oven. Cover with water, and bring to a boil. Reduce heat; simmer 20 minutes or until tender. Drain.
Heat 1 1/2 tablespoons vegetable oil in a large nonstick skillet over medium-high heat. Add half of potatoes; sauté 8 minutes or until lightly browned. Remove from the pan. Repeat procedure with remaining oil and potatoes. Place potatoes, onions, Chile Colorado, and salt in pan, and cook over medium heat 1 minute or until thoroughly heated, stirring constantly.