Start with a pound and a half of Habanero peppers. Use latex gloves when handling. Wash them really well and remove the stems.
Step 1: The Setup
I will assume you know how to use a smoker or cook indirect with a propane/charcoal grill. Message me otherwise!
Set the smoker up to run low heat, try to maintain between 150-200F the whole day. Use the indirect heating method if you don't have a smoker. The key is really low heat, you want to dry them out not cook them.
Step 2: They Say Waiting Is the Hardest Part....
Now let the smoke and heat work it's magic. I like to throw a few fist sized chunks of Mesquite wood onto the coals every few hours. If you are using the indirect method, I would suggest a smoke pack with mesquite chips.
The pictures show the progression of 14 hours of heat and smoke. You can take and finish them in the oven at the lowest heat setting you have if you don't want to be outside all day. It WILL make your house smell of hot peppers.
Step 3: And Rest
Now for the patience. Let them sit like this for about two weeks loosely covered to bleed off any additional moisture. It's a fairly dry climate where I live and that helps too. Your mileage may vary.
Step 4: The Payoff
And finally grinding day! This is done in the garage, with gloves, safety glasses and a mask on. Airborne Habanero peppers are a painful problem if not taken seriously....
Step 5: The Money Shot
The final product. This is amazingly hot stuff, slightly citrusy with a real nice smoky flavor. Goes great on anything a hot sauce would!
I hope you enjoyed my first Instructable and good luck with your fiery endeavors.