Step 1

In a small bowl, cover the dried chiles with very hot water and soak for about 20 minutes, until reconstituted, pliable and slightly plumped.

Step 2

In a mini food processor, blend the garlic until minced. Add in 1 to 2 of the dried chiles and 1/2 ounce of the fresh chiles and process until finely ground. (You may see small flecks of the chile in the mixture.) Stop the motor and taste the mixture, adding more of the dried and/or fresh chiles for more heat, if desired.

Step 3

Transfer the mixture to a medium pot, stir in the vinegar and taste, adding more vinegar, if desired. The sauce should be tangy and spicy. Add the sugar and salt. Place the pot over medium heat and bring it to a gentle simmer, stirring until the sugar dissolves, 2 to 3 minutes. Taste, and add more vinegar, sugar and/or salt, if desired; continue to stir until any additional sugar dissolves. If the sauce becomes too thick, drizzle in water, 1 tablespoon at a time, to thin it. It should be pourable.

Step 4

Remove from the heat and let cool completely. Then transfer to a sealable bottle or jar and refrigerate until needed.

Step 5

To serve, pour the sauce into little dipping bowls.

Step 6

NOTES: If you can't find Holland chiles, you can use Thai red chiles or Fresno chiles, adjusting the amount according to taste. If you can't find dried Thai chiles, use arbol or japones, but do not use ancho, chipotle or pasilla chiles, as they are too aromatic and smoky.

Step 7

The smaller the chiles, the hotter they will taste, so consider removing the seeds or cutting back on the quantity to control the heat. Wear food-safe gloves when handling chiles, if you are concerned about the burning or stinging skin.

Step 8

If you’re unaccustomed to heat, judiciously add the chile a little bit at a time until you get the level of spice you can tolerate.