Prepare the Peppers and Vegetables: Slice the hot peppers, mince the garlic, and chop the onion.
Cooking: In a saucepan, heat the olive oil over medium heat. Add the chopped onion and sauté until translucent (about 3-4 minutes).
Add the minced garlic and sliced peppers, and cook for about 5 minutes, stirring frequently.
Add the Liquids: Pour in the water and vinegar. Add the salt and sugar, then let it simmer over low heat for 10 to 15 minutes, until the sauce thickens slightly.
Final Mix: Remove from heat and let it cool slightly. For a smoother texture, you can blend the sauce with an immersion blender, or leave it chunky for a thicker sauce.
Add lemon juice for a tangier taste (optional).
Serving: Serve the spicy sauce with meat dishes, grilled vegetables, or use it as a condiment to spice up your meals.