I think in my one thread of cooking pictures I have a picture of some habanero jelly. Jelly isn't too hard to make.
Just a basic recipe really. Sugar, peppers, vinegar, and some liquid pectin is all you really need. If you want it hotter, cook it with the seeds in it, but I would strain the seeds out so the jelly looks prettier. I also put in some bits and pieces of pepper so I can have floaties. I usually use a bell for this so the heat is all Habanero. Mini bell with many colors work well.
Once jelly is in jars (leaving some room at top) wait for them to start to set up and then gently rotate the jars so the floaties will suspend in the jelly. Be careful not to pop your seal.
As far as pepper powder. If you're talking about what I think you are, then I just grind my peppers in a coffee grinder.