Ingredients

1. 1 cup loosely packed dried red chiles (1 ounce), rinsed
2. 3/4 cup boiling water
3. 1 teaspoon salt
4. 1 teaspoon sugar
5. 1 tablespoon peanut oil
6. 1/4 cup minced shallots
7. 1 teaspoon cider vinegar or rice vinegar

Directions

1. In a heatproof bowl, cover the chiles with the boiling water. Place a small plate on the chiles to keep them submerged and soak until pliable, at least 20 minutes or up to 2 hours.
2. Transfer the chiles and their soaking liquid to a blender and puree. Blend in the salt and sugar. 
3. Set a wok over moderately high heat. When it's very hot, add the oil and swirl to coat the wok. Add the shallots and stir-fry until softened, about 2 minutes. Add the chile puree and stir-fry for about 20 seconds, then remove from the heat and stir in the vinegar. Transfer the chile paste to a bowl to cool, then store in a glass jar.
   
   

Make Ahead

The chile paste can be refrigerated for up to 3 months.