In a medium skillet, heat 2 teaspoons of olive oil over medium heat. Once hot, add the diced sweet onion. Sauté for about 5 minutes, or until the onion becomes translucent and fragrant. Add the minced garlic and sauté for an additional 1-2 minutes, until the garlic is golden and aromatic.
To the skillet, add 1 cup of hot sauce, 4 ounces of diced green chiles, and 1/2 cup of honey. Stir well to combine, ensuring the honey is fully incorporated into the mixture.
Sprinkle in 1 teaspoon of chili powder, 1 teaspoon of paprika, 1/4 teaspoon of cayenne pepper, and 1/2 teaspoon of black pepper. Season with kosher or sea salt to taste. Stir everything together, allowing the flavors to meld.
Bring the sauce to a gentle simmer and let it cook for about 10 minutes. This helps the flavors deepen and intensify. Stir occasionally to prevent sticking.
Once the sauce has thickened slightly and the flavors have developed, remove it from the heat and let it cool. Transfer to a glass jar for easy storage.
