This is a really good and easy to make curry paste. No time used, no effort, and very tasty. As noted: Suze prefers less heat, Bold likes a lot. Go ahead and use as much, or little, cayenne as you like! The decision to use water or oil will depend on what type of recipe you will be using this in. An oil-based marinade, for instance would call for oil, likewise, water-based preparation.... do what works for you.