Heat oven to 350°F.
Sauté beef, onion and garlic in nonstick large skillet for 3 to 4 minutes or until beef is no longer pink. Stir in chilies, chili powder, salt and water. Bring to boiling; cook, stirring occasionally, for 10 minutes. Remove from heat.
Meanwhile, wrap tortillas in damp paper toweling. Microwave at high power for 1 minute. OR: To heat in conventional oven, wrap in damp paper toweling, then wrap in aluminum foil. Bake in 350°F oven for 10 minutes. (If tortillas are not heated, they will crack when assembling.) Increase oven temperature to 400°F.
Spread 2 tablespoons of refried beans on a warm tortilla. Fill center with scant 1/4 cup of meat mixture. Roll up tortilla and place, seam side down, in 13 x 9 x 2-inch baking dish. Repeat with remaining tortillas and filling, fitting them tightly in the dish side by side.
Spread picante sauce over enchiladas. Sprinkle with shredded cheddar.