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Wash tomatoes. Remove stem ends. To peel tomatoes, bring 4 inches of water to boiling in a large saucepan. Immerse tomatoes, a few at a time, into boiling water for 30 to 60 seconds or until the skins start to crack. Immediately dip tomatoes into cold water; drain in a colander. Slip off skins; discard. Remove cores and seeds. Chop tomatoes.
In a 6- or 8-quart stainless-steel, enamel or nonstick heavy pot, combine chopped tomatoes, vinegar, onion, sugar, chili powder, salt, mustard and cayenne. Bring to boiling; reduce heat. Simmer, uncovered, about 2 hours or until mixture is the thickness of ketchup, stirring occasionally.
Ladle hot chili sauce into hot, sterilized half-pint and/or pint canning jars, leaving a 1/2-inch headspace. Wipe jar rims; adjust lids.
Process filled jars in a boiling-water canner for 15 minutes (start timing when water returns to boiling). Remove jars from canner; cool on wire racks.