Prepare the ingredients: rinse the cranberries in cold water, deseed and finely chop the chili peppers. Peel and finely chop the red onion and garlic.
In a medium saucepan, heat the apple cider vinegar and water over medium heat. Add the red onion and garlic, and sauté for 5 minutes, or until the onion is softened.
Add the cranberries, finely chopped chili, honey, salt, and pepper. Stir well to combine, then bring the mixture to a boil.
Once the sauce has reached a boil, reduce the heat to low, and simmer for 20-25 minutes, or until the cranberries have softened and the sauce has thickened. Stir occasionally to prevent burning.
Once the sauce has reached the desired consistency, use an immersion blender to achieve a smoother texture, if desired. If you prefer a chunkier sauce, skip this step.
Taste and adjust the flavors as needed, adding more honey for sweetness or chili for heat.
Allow the sauce to cool completely, then transfer to a clean, airtight jar. Store in the refrigerator for up to one week.
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