Soak the sun-dried tomatoes in hot water for 4-5 minutes. Drain off the water.
Add the tomatoes, basil, garlic, pine nuts, parmesan, pepper, sugar, olive oil, and cold water to the bowl of a food processor.
Cover and blend until all ingredients are combined. The pesto will be a bit chunky. Add more water, 1 tablespoon at a time, and blend until your desired consistency is reached. Add salt to taste.
Transfer to a serving bowl or an airtight container for storage in the fridge (up to 1 week). Spread on toasted baguettes, mix into pasta, or use as a pizza base.
Notes
I've used dry-packed sun-dried tomatoes and sun-dried tomatoes in oil for this recipe. Both work fine. Drain any excess oil from the tomatoes before using. You can even blot them with paper towels.
To toast the pine nuts: Place a dry skillet over medium heat. Add the pine nuts and cook, stirring frequently for 3-5 minutes until they have a fragrant, nutty aroma and a light golden color. Transfer the pine nuts to a bowl to cool.