Prepare the ingredients: finely chop the chili peppers, peel and finely chop the red onion and garlic, and finely chop the dill.
In a medium saucepan, heat the olive oil over medium heat. Add the chopped red onion and sauté for 3-4 minutes, until translucent.
Add the minced garlic and sauté for another minute, until fragrant.
Pour in the tequila and honey, then mix thoroughly.
Add the chopped chili peppers and dill, and bring the sauce to a simmer.
Reduce the heat and simmer for 10-15 minutes, or until the sauce has thickened and the flavors have melded.
Taste the sauce and adjust the flavors as needed, adding more honey for sweetness or more chili pepper for extra heat.
Let it cool slightly, then blend until smooth with an immersion blender. Serve with grilled meats, seafood, or roasted vegetables.
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