Instead of sauce make a jam. Clean the chili as you recommend, then boil them for 20 minutes to soften the skin if you are using dried chili (I use roasted fresh with the skin, seeds, and vein removed). Chop or puree in a blender as you recommend. Pour the puree into a deep pot and cover with apple cider vinegar, add a package of lemon kool aide or the juice of 4-5 lemons. Start the mix to boiling and then add twice as much sugar as you have puree/vinegar in the pot. You can add one package of pectin if you want a more jam like result or leave it out and have a runnier result (runny works good on waffles, ice cream, etc.) You let it boil until it begins to thicken enough to sheet off of a spoon. Most of the time this takes another 15-20 minutes depending on how much water/vinegar is used.
We have made red sauce but we can buy the sauce from local restaurants by the quart and it is better than we make at home :)
We also dehydrate the fresh red chili after cleaning and that can be re-hydrated for sandwiches, recipes etc. or just eaten like jerky with a slice of cheese.
