I made some of this years ago and have corrected at least one mistake I made then with this batch.
You should end up with a potent and flavorful wine good for cooking or the brave at heart.

CAUTION: EXTREMELY POTENT

Step 1: The Begginning

The ingredient list is quite short, water sugar, chili peppers (your choice as the the hottness type), yeast.

Wash your peppers and then chop into small pieces, ending up with 3-4 cups worth.

Now the important part that must be done outside!!

Put the pepper pieces in a pot with enough water to cover them, bring to a boil then let simmer for 15-20 minutes.

Remove from heat and let cool.

Step 2: The Middle

Once the peppers are cool put them into a large sterile jug, I use an old 5 gallon water jug.

Add 1 to 1 ½ gallons of water and 5 pounds of sugar.

Mix thoroughly till all the sugar is dissolved.

Add 1 yeast cake (cake yeast is roughly equivalent to 1½ to 2 teaspoons instant yeast or 2 to 2¼ teaspoons active dry yeast) and a water airlock to the bottle or a balloon if you don't have one.

Stir every few days.

Step 3: The End

After letting your wine set for 10 days to 2 weeks it is time to bottle. By this time all of the heavy solids should have settled to the bottom leaving a nice clear yellowish brown wine on top and the peppers on the surface.

Make sure your bottles are clean and sterilized!

I siphon the wine out though a coffee filter into seperate bottles. I placed a dried pepper into each bottle after filling.

The longer it sets sealed in the bottles the better it will be.

Use as a nice cooking wine for a little spice or drink like regular wine but in small doses.