In a medium saucepan, add tomato puree (or ketchup), water, apple cider vinegar, molasses, brown sugar, Worcestershire sauce, butter, lemon juice, and yellow mustard.

Stir in garlic powder, onion powder, black pepper, salt, hickory smoke (or liquid smoke), and cayenne pepper if using.

Place the saucepan over medium heat. Stir continuously until the butter melts and the mixture begins to bubble gently.

Lower the heat to a simmer and cook uncovered for 15–20 minutes, stirring occasionally, until the sauce thickens to your desired consistency.

Taste the sauce and adjust salt, sweetness, or heat if needed.

Let the sauce cool slightly before transferring it to a jar or bottle. Store in the refrigerator for up to 2 weeks.