Take a bunch of dried chilies and put them in the bowl. I usually use 3-4 kinds of chilies, and 8-10 of each kind.
Fill the bowl with water.
Put the smaller bowl on top of the chilies to force the floaters to stay underwater.
Let this sit for 8 hours or overnight.
Drain 90% of the water.
Remove the stems from each chile.
As you remove each stem, put the chile in the blender/processor.
Add some of the soak water to the blender.
Blend them all into a smooth paste.
Use lemon juice, lime juice, or white vinegar to thin the paste and add some acidity.
Scrape out the blender/food processor and put it in a container.
Store in the freezer until you're ready to use it.