This sauce uses fresh, green New Mexico or Anaheim chiles and can be made mild or spicy depending on your preference. We experienced several versions of this sauce while on a road trip to New Mexico and some were hot while some were mild. Since Anaheims are not spicy by nature you’ll have to add some Serranos or hot green chile powder if you want heat.

New Mexico Green Chile Sauce can be made vegetarian by using vegetable broth and can be made gluten free by using gluten free flour, such as one-to-one flour.

Food in New Mexico often comes with a choice of red sauce, green sauce or both, which is called Christmas style.

Watch a Video

Here is a video of 2 Cooks in the Kitchen making New Mexico Green Chile Sauce:

Ingredients For New Mexico Green Chile Sauce

• 5 Anaheim Chiles, peeled, stems and skins removed and diced into 1/2 inch pieces
• 1/2 Cup Onion, diced
• 5 Garlic Cloves, chopped
• 1/4 Cup Olive Oil
• 2 tsp Flour – use gluten free flour for a gluten free sauce
• 1 Cup Chicken Stock – use vegetable broth for a vegetarian sauce
• 1/2 tsp Salt

Prepare the Chiles

To begin we need to prepare our chiles. We need to peel fresh chiles and remove the seeds before we can use them. To do this we need to char the skin to make it easier to remove. In Hatch, New Mexico there are several chile stands where they roast batches of peppers to sell. The roar of the roasters and the smell of the roasting chiles is everywhere at harvest time. We like to do this step on the barbecue but you can use any flame source or even your oven broiler. Turn the chiles to get an even char all around. Put the chiles in a pot with a lid to steam as they cool down, Once they are cool enough the skin comes off easily and then you can remove the stems and seeds.

Dice the Chiles

Once we have the chiles without skins and seeds we need to cut them into a small size dice. We’re after the size in a can of Ortega Diced Green Chiles, about 1/2 inch square. If you can’t find fresh chiles, a couple cans will work.

Chop Onion and Garlic

We also need to chop the onion and garlic. You can use any kind of onion for this. We like it with a yellow onion, which helps keep the green color, but a red onion is fine if it’s what you have. Heat a generous amount of oil in a pan over medium heat and add the onions and garlic.

Cook the Onions

Cook the onions for about 5 minutes, until they get translucent.

Make A Roux

Now we need to make a roux. Sprinkle the flour over the top and stir or whisk it in thoroughly so there are no lumps. Cook stirring constantly for about one minute.

Add the Broth

Now we need to add the broth. Chicken broth is called for here but you can use any broth including beef. Use vegetable broth to make this vegetarian. Whisk constantly when adding the broth to prevent lumps from forming.

Cook the Broth and Add Chiles and Salt

Now we need to bring this to a boil. Once it’s boiling we can add the chiles and salt. If you want it to be spicy, add some diced Serrano chiles or some hot green chile powder. Return it to a boil, turn down the heat and let it all simmer together for 30 minutes. It will thicken and reduce some of the liquid until you have a nice, thick sauce that tastes of fresh Anaheim chiles.

We encountered variations of this sauce throughout New Mexico. We use it in our Chorizo Stuffed Chiles Christmas Style recipe.

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