In a 2-quart saucepot, heat the olive oil. Saute the onion and garlic for 2 minutes or until translucent. Add the tomatoes and dried chiles. Continue to saute for 2 minutes. Add the bread and water, stir in well. Cook the mixture for 12 to 15 minutes, or until the chiles are soft and cooked.
Add the cooked mixture to a blender and blend until smooth. Pour through a strainer to catch any large pieces and seeds. Return the strained salsa to the saucepot and add the tequila. On low-medium heat, bring the sauce to a simmer for 2 minutes. Season with salt and pepper and serve warm.
Recipe courtesy Ricardo