Process 8 garlic cloves, 2 dried guindilla or New Mexico chiles, 2 teaspoons smoked paprika, 1 teaspoon ground cumin, and 1 teaspoon kosher salt in a food processor, occasionally scraping down sides of bowl, until a smooth paste forms. With machine running, drizzle in 1 cup extra-virgin olive oil and process until well blended. Add 1 teaspoon Sherry vinegar and 1 teaspoon water and process to blend. Season with salt.