In a skillet over medium-high heat, add 1 tablespoon olive oil. Add dried Arbol chiles, New Mexico chiles and garlic cloves. Toast for 1 to 2 minutes, stirring occasionally, until the chiles have softened and darkened in color. Be careful not to over-toast and burn. Transfer toasted chiles and garlic to a blender and set aside.
Add remaining teaspoon of olive oil to skillet. Add tomatillos and toast for about 3 minutes per side, until caramelized and softened. Place everything in blender and add water. Blend and season with salt as needed.
Add caramelized tomatillos, water and pinch of salt to the blender and puree until smooth. Add more water if salsa is too thick.