Put the cider in a large nonreactive pan and set over medium-high heat. Chop the peppers coarsely.
Once the cider comes up to a simmer, add the peppers. Steep until you get the desired heat extraction; this should only take a couple of minutes. Strain the cider through cheesecloth (the more layers, the clearer your jelly; I don't mind it a little cloudy), and return to the pan. Turn the heat back on.
Mix the pectin with 1/4 cup of the sugar. Whisk into the cider thoroughly. Bring the cider to a full rolling boil. Add the sugar, stirring well to mix. Bring once again to a full rolling boil for one full minute, stirring constantly.
Remove from heat, and skim away any foam. Ladle into sterilized jars, leaving 1/8 of headroom. Process using normal water-bath method.
Recipe courtesy of Sean Timberlake