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I also left out the water and used a little more lime juice. I didn't have any red pepper paste so I used hot chili powder. This is a great sauce and it goes with more than just Chacarero sandwiches.
This recipe is virtually identical to one my brother learned from his host mother while he was studying in Chile during college. He omits the water, but uses a tablespoon and a half each of vinegar, lemon juice, and olive oil. Very hot and delicious! I love it on bread, as suggested in this recipe, but it also makes a killer addition to chicken soup (like Chilean Cazuela), or just about anything you want to kick up a notch.