You know, one of the great pleasures in life is introducing some who claims to like "hot" food to Dave's Insanity sauce.
Idn't though.
Or scotch bonnets for the first time. THat look on their face; as it turs bright red and their lips start to puff up 
In college, I once ate a whole habanero on a dare.
That's something I will NEVER do again. I love heat, but not that much.
There are people who eat habaneros like they were pepper poppers.
Those people are fucking insane.
You might want to try substituting a can of RoTel green chiles and tomatos for the tomato paste. (A little advice from a Texan.)
Phelps, I'm not using tomato paste (I hate the stuff), I used tomato puree.
Every time I've tried canned chilis they were slimy and had an off flavor, if these are nay better I may give them a shot.
Damn I am DROOLING here! Can't wait for warmer weather so I can set my peppers out and get growing. The midwest is having one last taste of winter. Chris you should send this to Chili Pepper magazine. Let the Chili Heads rejoice.
Rey
Well, I have to admit I haven't tried Scotch Bonnets. But you're a bit further out than I on the hot food scale, I suspect. 
But I always put habaneros in my chile -- only I haven't cooked up a chile in way too long.
And, for the past few years, my diet has been pretty bland. I'm going to have to work back up to my favourite Thai restaurant's "Thai Hot" setting, which is what they told me to order back when I'd been there enough times that they understood that I really did want, and could handle, hotter than their "white man's" version of "extra hot".
Oh god I know that situation jed. I have to damn near beg to get them to serve it to me actually hot at indian and thai places.
A vindaloo should make my nose hairs burn; but walk into an indian place as a white guy and you get a vindaloo that's about as spicy as tabasco sauce.
Same problem with Ethiopian food. Homemade it melts the plate: walk into an Ethiopian place where they don't know you and they cut the heat back to less than they'd feed toddlers.
I've seen Ethiopians use scotch bonnets as pepper pops. That's a hot cusine done right.
For cutting up the habaneros, I've found that it's best to leave them for last - that way, you won't need the knife and cutting board again before you wash them. When handling them, I put a plastic sandwich bag over my left hand, and use it to hold the chile while I cut it with my right, being careful not to let the chiles anywhere the handles of the knife and cutting board. After I'm done cutting it up, I grab the stems and anything else that's getting thrown out with the bag, then simply turn the bag inside out and toss it in the trash. I use the knife to scrape the chopped chile right off of the cutting board into the pot, and then immediately put both in the sink. With this system, I typically don't even bother to wash my hands afterwards, and I've never once gotten chile residue in any sensitive places.
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