Got some white tequila. Cheap doesn't matter just 40%. In a qt bottle add fresh:

1 Habenero (one lengthwise slice to fold it for the neck)
2 Serranos (no cuts)
1 shot of gold tequila (mellos the cheap white bit a tiny bit)
4 American Oak medium toast cubes. (washed well so no charcoal dust falls off since it stays in the bottle)

Two weeks and it will be starting to blend well but yeilds the full exchange of flavors and oak coloring at two months. You can taste when the Habenero has gone from orange to milky yellow white in color. Your cubes should have sank by then also. Turn upside down quite often so the cubes and peppers can do their magic.

I am not as partial to the serranos as most folks are and they balance the hot one very well. Next one will be the serranos replaced with Jalapenos.