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Garlic and Achiote Fermented Hot Sauce

['2 garlic cloves', '1 pound fresh red chiles (such as cayenne, Fresno, or Holland), coarsely chopped', '3 tablespoons kosher salt', '3 tablespoons sugar', '1 cup olive oil', '3 tablespoons achiote (annatto) seeds', '2 teaspoons smoked paprika', '3/4 cup distilled white vinegar', 'A 1-pint glass jar; a layer of cheesecloth', 'Achiote seeds can be found in specialty stores', 'in the spice section of some supermarkets', 'and online.']

Pulse garlic in a food processor until finely chopped. Add chiles, salt, and sugar and pulse until chile pieces are no bigger than 1/2". Transfer mixture to jar and press down so chiles are slightly submerged in their own liquid. Cover with cheesecloth and fasten with kitchen twine or a rubber band. Let sit in a cool place away from direct sunlight at least 2 days and up to 5 days. The liquid will develop a slightly sour smell and there should be small bubbles scattered throughout. The longer you let it ferment, the more active it will become, but don’t go longer than 5 days.
Heat oil, achiote seeds, and paprika in a small saucepan over medium-high. As soon as small bubbles appear around the edges of the pan (2–3 minutes), let cook another 30 seconds; let cool. Strain oil through a fine-mesh sieve into a heatproof bowl; discard solids.
Blend achiote oil, vinegar, and two-thirds of chile mixture in a blender until smooth. Transfer to an airtight container and stir in remaining chile mixture.
Hot sauce can be made 2 weeks ahead; cover and chill.

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