For the Sriracha, coarsely chop chili and peeled garlic. Bring chili, garlic, vinegar, salt and sugar to a boil. Simmer for about 5 minutes until salt and sugar have dissolved.
Blend everything well to make a thick sauce. If desired, pass the sauce through a sieve to remove the chile seeds. This will make the sriracha a little milder.
Preparation Tip:
Sriracha is a sauce named after the Thai coastal town of Sri Racha. There it was first produced and used in local fish restaurants.