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Combine the peppers, garlic, salt, sugar, vinegar, and water in a blender. Blend on medium until chunky. Remove ¼ of the blended mixture.
Turn the blender to high and liquify the remaining contents of the blender.
Strain the liquified mixture so that you are left with just the juices.
Add the strained juice and reserved chunky bits to a pot.
Meanwhile, add the cornstarch to a small bowl with 1 teaspoon water, stir to mix well to make a slurry.
Heat the pot over medium-high heat. Once warm, add the cornstarch slurry and bring to a boil.
After reaching a boil, remove from heat and allow to cool completely. The chili garlic sauce is ready to serve.
To store, transfer the chili garlic sauce to a clean mason jar and seal it. Store in the fridge for up to 1 month.