Homemade Jalapeno Jelly

Ingredients

• 2 jalapeno peppers, seeded and chopped
• 3 medium green peppers, cut into 1-inch pieces, divided
• 1-1/2 cups white vinegar, divided
• 6-1/2 cups sugar
• 1/2 to 1 teaspoon cayenne pepper
• 2 pouches (3 ounces each) liquid fruit pectin
• About 6 drops green food coloring, optional
• Optional: Cream cheese and crackers