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Combine the tomato sauce, water, white vinegar, chili powder, cumin, garlic powder, onion powder, smoked paprika, dried oregano, sugar, salt, and cayenne (if using) in a small saucepan. Whisk until smooth.
Set the saucepan over medium heat and bring to a gentle simmer, stirring occasionally, until the sauce has thickened slightly and the spices are fully integrated, about 10–12 minutes.
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