Remove stems from fresh chiles, and cut each into fourths lengthwise. Scrape out seeds (& veins, for milder end product) and put in a large bowl.
Slice carrots diagonally about 1/8 inch thick and add to chiles. Sprinkle with salt and toss well. Set aside to "macerate" for 1 hour.
Put the water in a blender jar and add the chopped garlic, peppercorns, cumin seed, cloves, 10 of the bay leaves, the thyme leaves, and 1/2 tsp of the oregano. Blend as thoroughly as possible.
Heat the oil in a large, fairly deep pan. Add blended spices and the onions, and fry until liquid has evaporated and onions are translucent, not brown - about 10 minutes.
Strain chiles & carrots, reserving juice, and add to pan. Fry over fairly high heat, stirring and turning veggies over for 10 minutes. Add chile/carrot juice, vinegars, whole garlic cloves, 6 thyme sprigs, remaining 6 bay leaves, remaining teaspoon oregano, and the sugar. Bring to a boil; continue boiling around 8 minutes. Transfer to a glass or ceramic bowl, and set aside to cool before storing in fridge. Excess can be put up in canning jars.
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