Clean the Chilies and soak in boiling hot water for 3 hours. Take the Chilies out of water and grind them without adding any water.
Gradually add water and grind till the consistency of the paste becomes smooth. Remove into a wok and add Vinegar and let it boil for 2 to 3 minutes. Let it cool. Store it in airtight containers.
This can be added to spice up any of the Chinese dishes.