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Here's what you do:
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First, prep your veggies. (Pro tip: Use gloves when handling the peppers to avoid burning your hands and eyes. I learned the hard way. Argh!)
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I've found that removing the seeds and most of the ribs from the jalapeno peppers produces a sauce of moderate heat, which is my personal preference. If you like to breathe fire and have a Teflon gastrointestinal tract (hello, Charles Mayfield), feel free to keep the ribs and seeds, and/or use hotter peppers (like serranos or even Lumbre peppers).
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Throw everything into a high-speed blender (like a Vitamix or Blendtec) or a turbocharged food processor.
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A regular food processor will also work - but you'll want to cut the peppers and garlic into smaller pieces, and blitz the ingredients longer. Otherwise, your sauce may end up on the chunky side. We tested a batch using a weak little mini-prep, and the resulting sriracha was noticeably thicker (but still insanely flavorful).
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Puree until smooth.
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Don't worry about the froth on top - it'll cook off later.
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Pour the puree into a medium saucepan and bring to a boil over high heat
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As soon as it boils, reduce the heat to low and maintain a simmer for 5 to 10 minutes, stirring occasionally.
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By cooking the sauce, we concentrate and deepen the flavors, and cut the sharpness of the raw garlic.
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Once the foam subsides, the sauce should be a vibrant red color, and you shouldn't be able to detect any raw vegetable smell.
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Taste and adjust for seasoning if necessary.
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Transfer the sriracha to a jar (or three) and allow the sauce to cool. You can keep it in the fridge for up to a week.