To candy anything, start with simple syrup, water : sugar 1 to 1. Simmer over low heat (crockpot works great) until reduced by 1/3 and thin syrup consistancy.
Add seeded ripe chiles - cut a slit in one side and remove the seeds. continue to cook over low heat for 2 hours. Remove 1 to test, drain on a rack, when cool roll in granulated sugar.

You can add orange peel or lemon peel to "tweak" the flavor.

You can also candy dried peppers. Like the piquins - The original Red Hots candies.

From: Andie Paysinger. Via: Chile Head Mailing List
Posted By: Andie Paysinger
Post Date: Thu, 22 Apr 1999