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Here is an example of what your chiles should look like. These are New Mexico chiles, fairly even in color and no broken pieces or tears.
Next you will want to cut the top off of each chile to remove the stem. Then, cut a slit down the side of the chile to split it open. The majority of the seeds will shake right out. Use your fingers or a spoon to scrape any additional seeds off and pull off any dried veins.
You will need to add some liquid to the chiles to blend them properly. The liquid will depend on what you're making. For general use, plain water is fine. Or if it is not bitter, you can use some of the sokaing liquid. If you are making a sauce with vinegar in it, use a portion of the vinegar from the recipe.
Blend or process the chiles and liquid into a paste and use as needed. It is also convenient to add your seasoning to the chile paste. Throw a couple of garlic cloves in and you can avoid having to chop the garlic separately.