Step 1

In a food processor, pulse bell peppers, habañeros and habañero seeds (if desired) until finely minced, about 12 to 15 pulses. On a clean kitchen towel or cheesecloth over a bowl, transfer pepper mixture and squeeze to remove excess liquid.

Step 2

In a dutch oven over medium heat, combine pepper mixture, sugar, and vinegar. Bring to a vigorous boil. Add pectin and return to vigorous boil and stir frequently until temperature reads 221 degrees, about 10 to 15 minutes. Skim foam from jelly using a large spoon (see note 5).

Step 3

Transfer mixture to clean jars with tight-fitting lids. Allow to cool, uncovered, to room temperature then cover and refrigerate. Allow jelly to set, about 12 to 24 hours. Jelly can be refrigerated for up to 2 months (or see note 6 for canning instructions).