In a medium sauce pot place water, vinegar, habanero peppers, and red chili's. Bring to a boil then reduce to a simmer cook with lid on for 1 hour or till peppers are cooked.checking often.
Meanwhile stir sugar and cayenne pepper together and set aside.
After peppers are cooked place in food processor or blender with middle removed and holding towl over hole. When done processing strain thru siv catching the liquid in your sauce pot.
You can discard pulp or save for something else. I usually dehydrate and grind for pepper blend for my Firehouse Chilli.
Return sauce pot to low heat add sugar,pepper mix cook till sugar is completely dissolved. Cool and put on anything. If to thick add more vinegar and water. (You do not have to use sugar if you don't want to its just there to keep fire on tongue.