Dry roast the cashews over medium heat, turning frequently until golden. Combine the garlic and jalapeno pepper in a food processor to make a paste. Add the shallot and continue processing until a coarse paste forms. Add the cashews and process until smooth. Gradually add the olive oil in a steady, thin stream, processing, and then add the water and wine vinegar. With the motor running on low speed, add the lime juice, and then the cilantro and basil. Season to taste with salt and pepper. Add more lime juice if needed. If the sauce is too spicy, add a pinch of sugar or orange juice, as needed.