In a medium saucepan, combine all the ingredients over medium heat. Stir well to combine, making sure the sugar is dissolved.
Bring the mixture to a simmer, then reduce the heat to low.
Let the sauce simmer gently for about 15-20 minutes over low heat, stirring occasionally, to allow the flavors to meld and the sauce to thicken slightly.
Taste the sauce and adjust the seasonings to your preference. If you want it spicier, you can add more spicy ingredients.
Once the sauce reaches your desired consistency and flavor, take it off the burner and let it cool slightly before using it.
If not using it right away, place in an airtight container, mason jar, or squirt bottle to store.
