Prepare the peppers: If using dried chili peppers, rehydrate them by soaking them in hot water for about 10 minutes. For fresh peppers, simply chop them into small pieces. Remove seeds for a milder sauce, or leave them in for more heat.
Blend the ingredients: In a blender or food processor, combine the chili peppers, minced garlic, olive oil, red wine vinegar, lemon juice, smoked paprika, cayenne pepper (if using), and sugar or honey. Blend until smooth.
Season: Taste and adjust seasoning with salt and more vinegar or sugar to balance the flavor.
Cook the sauce (optional): For a deeper flavor, pour the blended mixture into a saucepan and simmer over low heat for 5–10 minutes. This step intensifies the flavors.
