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Sauté 1/4 cup chopped shallot, 1 tablespoon finely chopped peeled fresh ginger, 2 finely chopped garlic cloves, and 1/4 teaspoon dried crushed red pepper in 2 tablespoons olive oil in large saucepan over medium heat until golden. Set aside. Puree 8 cups seeded cubed watermelon in 2 batches in processor. Mix watermelon puree into the shallot-ginger mixture in saucepan. Bring soup to a simmer and cook until slightly thickened, 3 to 5 minutes, then season with salt and pepper. Chill until cold, then mix in 2 teaspoons minced fresh basil and 2 teaspoons minced fresh cilantro. Serve with lime wedges.