2 tbsp. oil or lard
1 clove garlic (opt.)
1/2 c. minced onion (opt.)
1 tbsp. flour
1 c. water
1 c. diced green chili
Salt to taste

In oil in a heavy saucepan, saute garlic and onion. Blend in flour with wooden spoon. Add water and green chili. Bring to a boil and simmer, stirring frequently, for 5 minutes.

This sauce may be used as a topping for eggs, served with beans or meat, in tacos or made into green enchiladas.