To reduce the spiciness in a chili, remove the internal membranes and seeds. Most of the capsaicin is in these less-watery parts of the chili. Trim and scrape them with a knife to reduce the heat while retaining the flavor. This is true for both fresh and dried chilies.
- Fresh chilies—Trim off the stem end (but sometimes leave the crown for its floral flavor). If the chilies are small, halve them lengthwise and then use a small knife or spoon to cut or scoop out internal ribs and seeds. If the chilies are large, it’s easier to quarter them lengthwise to remove the hot parts.
- Dried chilies—Some cooks break dried chilies and shake out the seeds. I’ve discovered that snipping them with scissors into ¼- to ½-inch lengths is easier. Toss the cut chilies a few times, and the seeds readily separate. Lift out the chilies or transfer them to a large-holed colander. Small seeds drop through while the chilies stay behind.