Chop the peppers and onions very fine and cover with boiling water and let stand for 5 minutes. Drain off the water and again cover with boiling water and let stand for 10 minutes more. Place in a muslin bag and allow to drain over night. Combine the vinegar, salt and sugar and bring to a boil. Add pepper mixture and cook for 20 minutes. Pour into sterilized jars and seal.
