Roasted Hatch Chile Cashew Sauce

Roasted Hatch Chile Cashew Sauce is a versatile plant-based sauce packed with flavors from roasted hatch chile and creaminess from the cashews. It’s great as a dip with chips, on wraps, sandwiches, and quesadilla, and as a sauce for pasta and noodles. 100% plant-based and gluten-free.

Hatch chile is a type of New Mexican peppers that are grown and harvested in the Hatch Valley region, New Mexico. They are long green chiles ranging from mild to really hot depending on the variety. If you are from the American Southwest, you are probably familiar with the Hatch Chile season which is happening right now. In Texas, grocery stores such as Central Market and Sprouts are plastered with all things Hatch chile and we love it. Since Hatch chile season is short, typically from the first of August through the end of September, this is a perfect time to enjoy Hatch chile.


You can buy Hatch chile fresh, pre-roasted (which is what I am using in this recipe), or frozen and used in many dishes like stew, saute, sauces, dips, pizza, or burger.


Roasted Hatch Chile Cashew Sauce is a really simple and versatile one. You will need a couple of ingredients: raw cashews, nutritional yeast (for a bit of a nutty, cheese-like umami flavor), roasted Hatch chile, starch/thickener such as tapioca or rice flour, & lemon juice for little freshness.

Cashews when soaked and blended lends a really creamy texture for sauces. In the past, I have shared Microgreens Cashew Spread, a no-cook recipe with vibrant microgreens while Roasted Hatch Chile Cashew Sauce is slightly thicker (which you can totally loosen up with more liquid) and more apt for cooking with it. I have been using them as a “cheesy sauce” for vegetarian quesadillas and pasta.


The yellow flakes you see on the above photo is nutritional yeast, a food additive/supplement that doesn’t sound appetizing but is a flavor bomb. It is different from the brewer’s yeast/baking yeast and SHOULD NOT BE substituted in recipes calling for baking yeast or vice versa. Nutritional yeast is made from a specially selected strain of Saccharomyces cerevisiae (single-celled organism) which is grown on molasses. They are harvested and processed with heat to kill/deactivate so it doesn’t have any leavening ability.

Nutritional yeast are an excellent source of vitamin B12, protein (1/4 cup has about 8 grams of protein) and are known for their cheesy/nutty/umami flavor.


I hope you are able to enjoy Hatch chile this season. If Hatch chile is not available in your area, you can look into sourcing them directly from the company as they ship fresh, roasted, or frozen variety. The cashew sauce can be made without roasted hatch chile if you wish and for some heat, add other peppers Chipotle or Jalapeno.

Roasted Hatch Chile Cashew Sauce

makes about 20 oz

1 cup raw cashews

2 large hot roasted Hatch chile, deseeded and roughly chopped
about 1/2 cup tapioca flour/starch or rice flour
1 tablespoon lemon juice
about 2 cups cup water
3 tbsp nutritional yeast
salt and pepper to taste

In a bowl, soak cashews in water for few hours. Drain and set aside.

– Add soaked cashews, chopped roasted Hatch chile, tapioca starch, nutritional yeast, lemon juice, and water and blend until smooth.
– Transfer the cashew mixture to the pan and let it simmer for 4-6 minutes until the sauce thickens. Season with salt and pepper to taste.
– Remove from heat and enjoy as needed.
– You can loosen up the consistency by adding a little water and reheating the sauce if needed.

Is Hatch chile is a thing in your area?

How would you use this Roasted Hatch Chile Cashew Sauce?

Dixya Bhattarai

Dixya Bhattarai

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