Pour sugar into a heavy 5 qt pot; stir in water til well blended. Bring mixture to a boil over high heat, stirring often. Reduce heat to medium and cook, uncovered, for 10 to 15 minutes. Pare and core apples; cut into small chunks, to make about 8 cups. Slice thinly or chop the peppers. Add apples, and peppers to sugar-water mixture. Cook (boiling gently) over med. Heat, stirring occasionally, for 35 to 40 minutes or til preserve is thickened and apples are translucent. Meanwhile, prepare 6 half-pint canning jars. Fill jars to within 1/8 inch of rim. Wipe clean and place lids and rings on screwing on as tight as comfortable. Let cool on a towel out of a draft; then press lids with your finger. If they stay down, they're sealed. Label and store in a cool, dark area. If not sealed, store in refrigerator. Makes 6 half pints. This is especially good with cream cheese on crackers.

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