In a large saucepan, heat the soup and half a can of water over medium-high heat.
Add chilies, chicken and 1 cup salsa.
Stir until mixture boils. Remove from heat.
In a 9x13, begin with a layer of torn flour tortillas.
Spoon 1/3 of the soup mixture over the tortillas, sprinkle with 1/3 of onions, and some cheese.
Repeat these layers two more times, ending with cheese.
Cover tightly with foil and bake at 350 for 35-45 minutes.
Serve with chips, salsa, and tortilla chips.