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1. Heat the oil in a medium sized skillet over medium heat. Once hot, add the onion, jalapeno and salt. Saute the onions and jalapenos until they have softened, about 4-5 minutes. Stir in the garlic, chili powder, cumin and sugar, and stir until fragrant, about 30 seconds. Pour in the water and tomato sauce. Add the chopped tomato. Bring to a simmer, and cook until slightly thickened, about 5-10 minutes.
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2. Once the sauce is done simmering, put a strainer over a medium sized bowl. Pour the sauce into the strainer. Squeeze out as much of the onion-tomato-jalapeno mixture as possible. Discard the solids. Use the sauce immediately, or pour into a lidded container and refrigerate for up to a week. Enjoy!
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Notes:
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1. As for the leftover solids (onion-tomato-jalapeno mixture), I discard them every time. However, you can use that mixture and toss it into your enchiladas with some cheese, sauteed veggies, or chicken if you're not vegetarian.
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2. If you don't care if your sauce is smooth, you don't have to strain the mixture. I couldn't pay my mom to take the time to strain it, so do whatever you like. Also, I've never tried it, but I see nothing wrong with pureeing the sauce if you don't have a strainer or don't want to strain it.
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3. I've made large batches and frozen this and it freezes wonderfully!
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4. Adapted from Pink Parsley; originally from America's Test Kitchen.
