To prepare sauce, combine all sauce ingredients (except butter) in a medium saucepan. Bring mixture to a simmer over medium high heat until jalapeno jelly and sugar dissolves. Reduce heat to low and simmer on low for 4-5 minutes, stirring often.
Remove from heat and stir in butter. Allow sauce to cool before using. Use immediately or store in an air tight container in the refrigerator for up to one week.
To use, simply baste onto ribs (or meat of choice) during the last 30 minutes of cook time. Do this every 10 minutes or so, until right before the meat has cooked through.