1/4 Cup water
2 T oil (I use olive for better flavor,but you can go neutral)
1 T flour (your choice, I use whole wheat pastry because it's what I have and adds no flavor)
4 tablespoons (at least) red chile powder
pinch of cumin
salt to taste
In a small sauce pan, combine water, oil and chile. Heat and mix until everything is combined fully. Add flour and cumin, heat until thick and bubbly. Add Salt. Adjust spices (aka, add more chile). Heat a bit more to bring out the heat. It should be thick and red and amazing and unforgettable.
In terms of what is “traditional” or not, I don't really care. You can email me and tell me I'm doing this all wrong and that it's not really traditional red chile unless you make it standing on one leg with a gila monster stuck to your head, but honestly, I don't care. If it's vegan and it tastes good, I'm eating it. That being said, you can make this sauce with any red chile powder, but if you really want something amazing, you'll make it with red chiles grown in NM. Specifically Hatch, NM.
Shit. I misplaced my gila monster again.