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Combine all ingredients in a small saucepan over medium-low heat. Cover and cook until the garlic is soft and just beginning to color, about 20 to 25 minutes.
Leave the lid on, remove from the heat, and set aside for 10 minutes; the garlic will continue to cook in the heat of the oil.
Strain the oil into a clean glass jar and spoon in the garlic, thyme, and chili.
Once cool, transfer everything to an airtight, sterilized jar and store at room temperature for several weeks.