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In a large saucepan, add olive oil and diced onion. Saute for 5-7 minutes over medium high heat, until onion is softened.
Add 4 cups of water, vegetable bouillon, tomato paste, and all spices (not the arrowroot or lime juice yet), and mix well.
Add to a blender, and process until smooth.
Return to pan. Add the remaining 4 cups of water.
Mix arrowroot powder and water in a small cup, and mix to combine, then slowly pour into the sauce while stirring.
Add the lime juice, and turn off heat.
This recipe makes 8 cups of enchilada sauce. I find 2 ½ cups is about perfect for a 9x13 pan of enchiladas, so I divide this in 3 jars or freezer bags and freeze two portions for later.
Note: *Chili powders range greatly in spiciness. Start with a smaller amount of chili powder, and add more to taste. The chili powder I use is on the milder side, so I use a lot (4 tablespoons), because we like it to have a spicy kick. If you'd like it mild, or your chili powder is especially hot, start with 2. The enchilada sauce should be spicier than you think you'd like it off a spoon, because the other ingredients in the enchiladas will tone it down. If its too mild, your enchiladas will be a bit bland.