Get all the ingredients together in one place.
In a large skillet, heat up the oil on medium-high heat. Once the oil is hot, add the beef and continue stirring until it browns evenly.
Discard any excess liquids or juices from the skillet, while keeping beef in the pan.
Combine the water, salt, chili powder, onion, allspice, garlic powder, tomato paste, ground mustard, cinnamon, cayenne pepper, cumin, and black pepper in the skillet. Mix everything together well.
Start by bringing the mixture to a boil over high heat. Reduce the heat to low and let it simmer for 1 hour, stirring occasionally.
Keep cooking until the sauce has the desired thickness, bearing in mind that coney sauce is usually thin and soupy.
Taste the mixture and add pepper and salt if you want to adjust the seasoning. After adjusting the seasoning, remove the skillet from the heat, cover it, and set it aside.