Soak tamarind in hot water for 30 minutes until softened.
Mash the soaked tamarind thoroughly with a spoon or fork.
Strain the mixture through a fine sieve, pressing the pulp to extract maximum puree. Discard the fibrous remains.
In a small saucepan, combine the tamarind puree, sugar, chili powder, ground ginger, garlic powder, and lemon juice.
Heat the mixture over low heat, stirring continuously.
Simmer for 7-10 minutes, allowing flavors to meld and sauce to thicken slightly.
Add water gradually to achieve desired consistency.
Taste and adjust sweetness or sourness as needed.
Remove from heat and let cool before serving or storing.