To peel tomatoes, dip them in boiling water for 30 seconds; plunge into cold water. Slip skins off. Quarter tomatoes. Place in blender container; cover and blend until nearly smooth. Measure 2 cups of the blended tomatoes; return to blender container (or place canned tomato puree in blender container). Add the drained chilies or chili powder or crushed red pepper. Add onion, garlic, salt and sugar; cover and blend until smooth.
In 1 1/2 quart saucepan combine tomato mixture and cooking oil. Cook and stir over medium heat about 10 minutes or until sauce is slightly thickened. Makes 2 cups.
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