In a large dutch oven or pot, heat 2 tablespoons oil over medium-high heat. Add the annatto seeds and fry for about 5-10 minutes until the oil has turned an orange-red color. Remove the seeds and discard them.
Add the rest of the ingredients and bring to a boil. Reduce heat to low and cover. Let it cook for about 30 minutes, stirring occasionally, to keep the meat from sticking to the bottom of the pot. Much of the water will have evaporated and you will have some fat left. Turn your heat back up to high and fry the pieces of meat until crispy on the edges. Serve immediately with steamed rice.