2 1/2 c ketchup
1 1/4 c water
1/3 c chopped onion
3 T packed brown sugar
1 T white vinegar
1 1/2 t liquid smoke
1 1/2 t Worcestershire sauce
1 1/2 t hot pepper sauce
1 t garlic powder
1 t chili powder
1/2 bay leaf
salt/pepper to taste

Combine all ingredients in medium saucepan. Bring to a boil, reduce heat and simmer uncovered 10 minutes.