In a small saucepan, add water, tomato paste, applesauce, molasses, apple cider vinegar, honey, onion and garlic powders, mustard, liquid smoke, salt and cayenne pepper. Whisk until well combined.
Bring to a boil, cover half way with a lid to prevent splashing and simmer for 20 minutes. Stir a few times to prevent burning on the bottom.
Let cool and transfer to a glass jar. Makes about 2.5 cups.
Use as you would use a store bought BBQ sauce or when making Instant Pot ribs.
Notes
Make ahead and store: Cook, cool completely (to avoid condensation and thus spoilage) and refrigerate BBQ sauce in an airtight glass jar or any airtight container for 1-2 weeks.To make it last longer, make sure to use clean utensils each time when serving. If BBQ sauce starts to smell sour, separates oddly or has mold in it, it's better to discard it.Freeze: In an airtight freezer safe glass jar or container, leaving some room for expansion, up to 3-4 months.