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In a small saucepan, boil water and cashews for 15 minutes. Drain, reserving 1 cup liquid.
In a small bowl, mix together salt, cayenne, chili powder, garlic, onion powder, turmeric, and smoked paprika.
To a blender add cashews, ½ cup reserved water, spices, nutritional yeast, canned chilies, jalapeño, cider vinegar, mustard, and a splash of hot sauce.
Blend until smooth, adding a little more water if needed. Taste, adjust seasonings if desired.
Makes about 2 cups.