1. Place peppers, in batches, in a food processor. Cover and process until pureed. Pour through a fine mesh strainer set over a bowl. Press solids to extract juice. You should have about 2 1/4 cups juice (discard pulp). Place juice in a large saucepan. Bring to boiling; reduce heat. Simmer, uncovered, over medium heat for 25 minutes or until reduced to 3/4 cup, stirring occasionally. Cool.
2. Preheat oven to 350 degree F. Line 24 to 30 2-1/2-inch muffin cups with paper bake cups; set aside. In a large mixing bowl beat butter and sugar until fluffy. Add the eggs, one at a time, beating on low after each until combined.
3. In a medium bowl stir together the cake flour, baking powder, baking soda, and salt; set aside. In a small bowl stir together the buttermilk, pepper juice, and vanilla.
4. Add half of the dry ingredients to the beaten mixture; beat on low for 10 seconds, scraping sides of bowl. Add half of the liquid ingredients and beat for 10 seconds, scraping sides of bowl. Repeat with half of the remaining dry ingredients and all of the remaining liquid ingredients. Beat in remaining dry ingredients until combined.
5. Spoon batter into prepared muffin cups, filling each 3/4 full. Bake for 15 to 18 minutes or until a toothpick inserted in each comes out clean. Cool in cups for 5 minutes. Remove and cool on wire racks. Spread each with Cream Cheese Frosting.
1. In a large mixing bowl beat butter, cream cheese, vanilla with an electric mixer on medium speed until light and fluffy. Gradually beat in powdered sugar until frosting reaches spreading consistency.