New Mexico Red Chile Sauce Makes 2 1/2 to 3 cups. 10 to 12 dried red New Mexican chiles, stems and seeds removed 3 cups water 2 tablespoons vegetable oil 1 medium onion, chopped 2 cloves garlic, chopped Rinse off the chiles and place them in a pot with the water. Bring to a boil, reduce the heat and simmer for 15 to 20 minutes to soften. Saute the onion and garlic in the oil until soft. Place all the ingredients, including the chile water, in a blender and puree until smooth. Strain the mixture for a smooth sauce. Source: "http://easyweb.easynet.co.uk/~gcaselton/chile/chile.html"