Submerge trimmed peppers in a bowl with 2 cups of water to soak for at least an hour. After an hour, add all of the ingredients with the rehydrates peppers and soaking liquid to a blender. Process on high until completely smooth.
Pour the blended contents into a heavy saucepan to simmer on medium-low heat for 25 minutes; stirring frequently. Allow it to cool to store in a lidded jar or use it immediately.