Get some fresh peppers (habaneros, jalapenos, whatever,), a red onion and either several garlic cloves or add garlic powder later. You can get some fresh cilantro, too, if you like.
Get a really sharp knife.
Slice the peppers and onions thinly.
If you have a dehydrator, use that. If not, get a cooking rack, cover it with paper towels and put in front of a small fan.
Spread the slices of peppers and onions on the paper towels. It should take about 10 or 12 hours to completely dry out the peppers. If you want cilantro, dry it, too.
When everything is dry, use a coffee grinder to grind the slices finely.