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Heat oil in a saucepan over medium heat. Add cumin seeds, ginger, cayenne pepper, fennel seeds, asafoetida powder, and garam masala; cook and stir for about 2 minutes to release the flavors.
Stir water into the pan with the spices along with sugar and tamarind paste. Bring to a boil, then simmer over low heat until the mixture turns a deep chocolaty brown and is thick enough to coat the back of a metal spoon. This should take 20 to 30 minutes. The sauce will be thin, but it will thicken upon cooling.