Aji Panca is a type of chile pepper that is commonly grown in Peru, and frequently used in Pervian cuisine. It is dark red, mild pepper with a smokey, fruity taste. It's often sold dried, or prepared into a paste. You can find the dried peppers and jarred paste in Latin food stores.
To make a paste from fresh aji panca peppers, remove the seeds and process the peppers in the blender or food processor with a little bit of vegetable oil to make a paste. Dried chile peppers need to be soaked in very hot water for 5 to 10 minutes first, then processed. Store in a glass jar and refrigerate.