Begin by prepping the datil peppers. Cut off the stems and discard them, then finely chop the fiery peppers, removing any seeds for a milder heat level.
In a medium-sized saucepan, combine the chopped datil peppers with garlic powder, apple cider vinegar, paprika, lemon juice, and tomato paste. Stir well to ensure all ingredients are evenly mixed.
With the heat set to medium, let the sauce cook for about 5 minutes, stirring occasionally. This will allow all the flavors to merge together.
Next, add in a splash of water and a drizzle of honey. These two ingredients will help thin out the sauce and balance out the intense heat from the peppers.
Allow the sauce to simmer for an additional 5 minutes, stirring occasionally. Once done, taste and adjust the seasoning as desired before letting it cool down to room temperature and storing it in an airtight container in the fridge for up to 2 weeks.