Roughly chop chilies, onion and garlic. Transfer to a nonreactive container, add just enough water to submerge vegetables, add salt, then cover with a lid fitted with a fermentation vacuum airlock. Place in a dark area, and let stand at room temperature for 7 days to ferment. Stir once each day.
Second Ferment
Stir in carrots and sugar and loosely attach lid. Let chile mixture stand at room temperature for 21 additional days, stirring once every three days.
Put all ingredients into a blender and purée until very smooth. Taste. The heat should be smooth with a hint of sweetness on the finish. If it tastes “sharp,” return to the container for another week of fermentation.
Acidification and Bottling
Transfer mixture to a non-reactive saucepan over medium high heat. Bring to 180*F and hold at that sterilization temperature for at least 10 minutes. Add acid blend and return to 180*F for an additional 10 minutes.
Remove from the heat and allow to steep until mixture comes to room temperature. Taste and season with more salt, garlic, or cayenne pepper if necessary. Add distilled water to desired consistency.
Let age at least 2 weeks before bottling in heat sterilized bottles. Can be stored at room temperature, unopened for 6 months, in the refrigerator for up to a year.