In a saucepan over medium heat, sauté the garlic until aromatic (1 or 2 minutes).
Add the carrots, yellow onion, and water. Increase the heat to high and bring to a boil.
Once boiling, immediately reduce heat to low and simmer the ingredients for 8 to 10 minutes (until the carrots soften).
Remove the saucepan from the heat and add the habanero peppers, lime juice, sugar (optional), and salt. Stir to combine, then using a hand mixer (or blender) process the ingredients into a sauce. Add more sugar (optional) and salt to taste.
Allow the sauce to cool to room temperature. Use immediately, or store in airtight containers (refrigerated) for up to two weeks. Note the sauce will get hotter as it ages.