Prepare peppers by washing, drying, de-stemming and chopping into one-inch pieces. There is no need to remove seeds. Set aside.
Heat oil over medium high heat in a medium sized dutch oven.
When the oil is heated, add the jalapeno peppers and sweet onion to the pan. Cook for about 5 minutes or until tender.
Add sugar, salt, cumin and garlic to the dutch oven and cook for one additional minute or until fragrant.
Carefully pour in the water and bring the mixture to a simmer, adjusting the heat as necessary. Simmer for 5 minutes.
Remove from heat and cool slightly.
Transfer mixture to the blender along with the vinegar and fresh cilantro. Use the pulse setting to blend until smooth.
Transfer to woozy bottles and store in the refrigerator.