Mix water, yeast, salt and sugar. Add flour and jalapenos and mix into a ball.
Knead for 10 to 12 minutes, adding more flour if necessary, until dough is stiff.
Add red peppers and knead for 3 minutes.
Let dough rest 10 minutes, then cut into 12 pieces with a knife.
Roll each piece of dough on a table to form long cigar-like shapes. Then, for
each of the twelve pieces, connect the two ends by overlapping them about 3/4 of
an inch and rolling the ends together to make a ring shape. Make sure each joint
is secure or it will come apart while boiling.
Cover with a damp towel and let rise 1 to 1 1/2 hours in a warm spot.
In a large pot, bring 1 to 2 gallons of water to a rolling boil. Place bagels
in boiling water and boil until they float (15 to 30 seconds).
Remove with a slotted spoon and place on a lightly greased cookie sheet.
Bake at 400 degrees F for 10 to 15 minutes or until golden brown.