In a medium saucepan, heat the 2 ½ tablespoons of extra virgin olive oil over medium heat. Allow it to warm up for about a minute.
Add the 4 cloves of minced garlic and the 1 small chopped onion to the saucepan. Sauté for about 3-4 minutes until the onion becomes translucent and the garlic is fragrant. Be careful not to burn the garlic, as it can turn bitter.
Pour in the 1 can (14.5 ounces) of fire roasted diced tomatoes along with the 1 pinch of cayenne pepper, 1 ¾ tablespoons of smoked paprika, and 1 teaspoon of hot paprika. Stir well to combine all the ingredients.
Mix in the 1 chopped roasted red pepper. This will add a lovely sweetness and depth of flavor to your sauce.
Sprinkle in the ½ teaspoon of granulated sugar and add the 2 ½ tablespoons of sherry vinegar. The sugar will balance the acidity of the tomatoes, while the vinegar brings a sharp brightness to the sauce.
Allow the sauce to simmer for about 10-15 minutes on low heat. This will help meld the flavors together beautifully. Stir occasionally to prevent sticking.
Once the sauce has thickened slightly, taste and add salt as needed. This is your chance to adjust the seasoning to your personal preference!
If you prefer a smoother sauce, use a blender or immersion blender to puree it to your desired consistency. This step is entirely optional; some may enjoy the chunkiness of the sauce.