In bowl, add button red chillies, hot water and soak for 20 minutes then strain.
In chopper,add soaked button red chillies,garlic and chop well.
Add vinegar,mix well & set aside.
Cut tomatoes into cubes.
In pot, add tomatoes, cinnamon stick, cloves, bay leaves, salt and mix well, cover and cook on low flame for 20-25 minutes or until tomatoes are soft.
Remove cinnamon stick and bay leaves,pour whole mixture in a bowl and blend until fine puree then strain well though fine sieve.
Put it on stove, in tomato puree, add blended red chilli mixture, sugar, mix well and bring it to boil and cook on medium to low flame until it thickens (approx. 35-40 minutes) and keep mixing in between (check by cold plate technique method) and cook for 8-10 minutes more to remove moisture and again check by cold plate technique method.
Let it cool and store in a dry & clean jar for up to 5-6 weeks in refrigerator. Chilli garlic sauce is ready.