I have mine in a plastic bag so they arent actually getting wet or watter logged at all.
I have done this once or twice before. Whats your recipe?
I don't really follow a recipe. I just wait until I have enough ripe peppers to make it worth doing, usually enough to fill at least 2 big pots. I cut the peppers up (seeds and all) in fairly good size chunks, just to make them easier to cook down. Oh yeah, I cook them down. Some people make sauces that are "fresh" but to me that takes more time and is more like salsa.
So once in the pot I add some vinegar so they don't stick or burn and also for added liquid as peppers dont have much. I also add some salt at this time. After about a half hour to an hour they have turned to a mush and I add more vinegar as needed to keep it liquid.
At this point I take a hand held blender and puree all the peppers. I then strain the liquid into another pot using a basket strainer and a ladle. I ladle in a few scoops and use the ladle to work out and separate the pulp and seeds through the strainer. This done right takes about 30 seconds each small batch with little pulp to throw away. Make sure you use a fine but large WIRE strainer.
Once all the pulp is removed and everything is back into pots I add more vinegar and salt to taste and bring back to a boil and then cook for another 15 minutes or so on medium heat stirring so it won't stick or boil over.
At this point I do one of two things depending on how patient I am. I either can it right then and there while it is still hot or I let it cool and sit overnight for the flavors to blend more. Then the next day I boil again and then can. This aging makes a better sauce.
That is about it. I am not big on recipes, I mean it's just hot sauce and I am not selling it so no big deal if one batch is a bit different from the other. I also noticed the older the peppers the better the flavor. Last year we had so many ripe peppers I couldn't keep up with them and they got real deep red and soft and "chewy" on the plants. I used them anyway and they made the best sauce yet with the reddest color yet.
Last year I think we counted about 80 hot peppers plants of 5 types.