Cover chiles with warm water. Let stand until softened, about 30 minutes;
drain. Strain liquid; reserve. Remove stems, seeds and membranes from
chilies. Cook and stir onion and garlic in oil in a 2-quart saucepan until
onion is tender. Stir in chilies, 2 cups of the reserved liquid and the
remaining ingredients. Heat ot boiling, reduce heat. Simmer, uncovered, 20
minutes; cool. Pour into a food processor workbowl fitted with steel blade
or into a blender container; cover and process until smooth. Cover and
refrigerate up to 10 days. Makes about 2 1/2 cups sauce.