Peel the onions, slice off the ends, and chop them into pieces of any shape that are roughly 1/2" to 3/4" in size. Set these to the side.
Rinse the peppers in cold water. You may want to put on gloves before chopping these peppers. Slice off the tops of the Hot Peppers. Remove the guts and set them to the side in a bowl. They are going to be added to the stockpot. Again shape does not matter. You can cut the peppers in 1/2" rings if you like. Or cut the peppers lengthwise and then 1/2" pieces. Whatever you desire.
Now that you have cut the peppers and onions. You can start filling the stockpot. First add all of the stewed tomatoes.
Toss in the onions and stir in with the tomatoes as well as is possible. No strict requirements here, or on the peppers.
Add in the peppers and fold in with the tomatoes and onions. Pot is going to be very full. This will cook down greatly.
pour in your water and add the sugar in any order.
Simmer over medium heat until the mixture is cooked down to about 4 quarts. There should be a decent amount of liquid. The process will probably take about 2 hours. Add sugar along the way to get it to your desired sweetness. This is intended to be a very hot and very sweet dish.