01 - In a small saucepan, combine vinegar, water, garlic, onion, chilies, peppercorns, sugar, salt, and bay leaf.
02 - Bring the mixture to a gentle simmer over medium heat, avoiding a full boil.
03 - Allow to simmer for 3 to 5 minutes until the garlic softens and flavors meld.
04 - Remove from heat and let the sauce cool to room temperature.
05 - Transfer to a clean jar or bottle and refrigerate. Let infuse for at least one hour before use.