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This is insane.  And if I could stand the taste of alcohol, it is absolutely what I would drink.
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I can think of a use for this, but I think it is considered a war crime.
Read the reviews. Man oh man...

At a pepper tasting a few Penguicons ago, I tried some hot pepper vodka. I have never had any alcoholic beverage make me feel that sick, before or since. I think I'll stay away.
I suspect you won't taste this alcohol.
Personally, I prefer hot peppers in food, not drinks.  There's a place near here that serves a burger with ghost peppers on it.  I love spicy foods and I still think that anyone finishing it should get at least one drink for free.  It's non-alcoholic, but between the burger and the cheese, I'm fairly sure it isn't vegan.
I've made several meads with varying degrees of heat. My most reliable method is to extract the heat in pure grain alcohol, and then dose the mead with the extract. The best was an apricot melomel with about 5ml habanero extract to 750ml mead. About like a medium to hot salsa, with the heat coming on after the apricot. Use laboratory hygiene when handling the extract, please. 
A friend of Indian descent in NYC makes a pepper vodka like that, and I'm trying to get him to bring some to Lunacon.  He says he routinely eats food rated at 1,000,000 Scoville units, so his vodka is likely in this range.
Maybe this is what Chief Wiggum put in his chili?
+Elle Plato I suspect that as well, as I have a bottle of vodka that I left some cloves in a for a while and I notice the clove much, much more than the alcohol. And that's a MUCH milder flavor, comparatively.
There's a fellow I've seen at the occasional Virginia wine festival who purveys several flavored liquors, including jalapeno. I've even tasted some straight. I get the strong impression his stuff was intended for cooking, not drinking. Alcohol + capsaicin = a sinus-cleaning high that rivals wasabe (and if they haven't tried adding that to the mix, it's only a matter of time).
+Paul Brinkley be careful about adding too much.  Food is like music, the right 2 or 3 notes make a beautiful chord, but even the most beautiful notes in too great a number just become noise.  Thus it is with food, too many spices and you just get a confused jumble.  I've tried making chili sauces before and they have been underwhelming, so take my comments for whatever they might be worth.
It's insane.  It's what you'd drink.  Ergo ...
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