Step 1: Procure pepper(s) and knife
While you can use a paring knife, your fingers will be much closer to the peppers and will be more likely to pick up capsaicin. I'm using a 10inch chef's knife in these pictures.
Hot peppers have a nice, non-spicy external skin, so you want to hold it by the stem and the skin and avoid touching the seeds, cut surfaces, or internal flesh. The hotter the pepper the more relevant this separation becomes.