Pour the ketchup, honey, white vinegar, brown sugar, Worcestershire sauce, yellow mustard, and butter into a medium saucepan. Stir well until the mixture looks smooth and fully blended.

Sprinkle in the garlic powder, onion powder, smoked paprika, cayenne pepper, black pepper, salt, chili powder, and liquid smoke. Keep stirring so all the spices mix nicely into the sauce without any lumps.

Set the saucepan over medium low heat and allow the sauce to gently bubble. Cook for about 12–15 minutes, giving it a stir every few minutes. The sauce will turn rich, shiny, and slightly thicker as it cooks.

Take the saucepan off the heat and let the BBQ sauce cool for a few minutes. Pour it into a clean jar or bottle with a tight lid. Use it right away or keep it in the refrigerator.