2/3 pound fresh red chiles (about 5 inches long), stemmed and cut into pieces
1/4 cup water
1 teaspoon salt
1/3 cup extra-virgin olive oil
In a blender, puree the chiles with the water and salt until as smooth as possible; the seeds will remain whole.
Heat the olive oil in a medium sauce-pan. Add the chile puree and cook over moderately low heat, stirring occasionally, until the liquid is evaporated and the oil separates, about 25 minutes. Let cool, then transfer to a jar.