Combine all ingredients except pectin in large kettle or Dutch oven. Stir well. Bring to hard rolling boil, and boil 1 minute, stirring constantly.

Remove from heat and let stand 5 minutes. Skim foam from top with metal spoon.

Add pectin and stir well.

Quickly ladle into hot, sterilized 1/2 pint jars, leaving 1/4-inch headspace.

Wipe rims of jars with damp cloth; cover at once with metal lids and screw bands; seal tightly.

Process filled jars in hot water bath; or refrigerate immediately after cooling.

Turn jars frequently during cooling to distribute pepper evenly throughout jelly.