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  Chilies belong to the capsicum family, as do sweet peppers, but there the
  relationship ends, for the fiery heat of the chili is in no way similar to
  its mild-flavored relation. Fresh chilies are now widely available and vary
  considerably in size, shape and heat factor. In principle, the fatter
  chilies tend to be more mild than the long, thin varieties, and the smaller
  the chili, the hotter its taste. Generally, the unripened, green chili is
  less fiery than when ripened and red. This is a useful guide to follow, but
  there are exceptions according to the variety, so it is wise to remember
  that all chilies, irrespective of color, shape and size, are hot, so use
  caution before adding them to a dish. Bear in mind that a little chili goes
  a long way, so add a small amount to begin with and gradually increase the
  quantity to your liking during cooking.
  
  Take care when preparing chilies - the tiny, cream-colored seeds inside are
  the hottest part and, in general, are removed before using. Chilies contain
  a pungent oil which can cause an unpleasant burning sensation to eyes and
  skin, so it's a wise precaution to wear rubber gloves when handling chilies
  and be sure not to touch your face and eyes during preparation. Cut off the
  stalk end, then split open the pod and scrape out seeds, using a pointed
  knife, and discard. Rinse pod thoroughly with cold running water and pat
  chili dry before chopping or slicing as required. Once this task is
  completed, always wash your hands, utensils and surfaces thoroughly with
  soapy water.
  
  Dried red chilies are sold whole and can vary in size from 1/2-3/4 to
  1-1/2-2 inches in length, so this into account when using. If a recipe
  states small dried chilies, and you only have the larger ones, adapt and
  lessen the quantity accordingly, or to taste. Dried chilies are usually
  soaked in hot water for 1 hour before draining and removing seeds as
  described above), unless a recipe states otherwise.
  
  Dried red chilies, when ground, are used to make cayenne pepper and
  combined with other spices and seasonings, also make chili and curry
  powder, and chili seasoning. They are also used in the making of hot-pepper
  sauce and chili sauces.
  
  The Harissa spice mix uses a large quantity of dried chilies and is very
  hot, so be forewarned! This is a favorite spice mix for many Middle Eastern
  dishes. Don't be tempted to add more Harissa than recipe states, unless you
  are prepared for an extremely hot dish. A less fiery Harissa can be made
  simply by removing the seeds from soaked chilies before crushing chilies
  with other ingredients.
  
  Green chilies are available canned. These are often seeded and peeled and
  taste pleasantly hot and spicy - ideal for adding to pizza toppings, sauces
  and taco fillings. Both red and green chilies also come pickled in jars
  (hot or mild/sweet) and can be found in delicatessens and ethnic food
  shops. Canned and pickled varieties should be drained and patted dry before
  using. Whether you seed the pickled type is up to you, just remember the
  seeds are the hottest part!