I had to cut some peppers for dinner last night, so I thought I'd share with you how I do it. This method keeps my fingers from getting too "hot" and I don't have to fool with those pesky seeds. I cut Jalapenos and other small peppers this way also. Sorry some of my pictures are so small.
First, I cut off each end of the pepper.
Then, I cut off each section of the pepper leaving behind the core, seeds, and white membranes.
Then I cut each section into slices that are about 1/4-inch wide. It is easier on you and your knife if the inside of the pepper is facing up. It is harder to cut through the pepper skin-side first. Next I gather the slices into a bunch and cut. Voila, diced pepper.
I usually go back and cut off the good parts of the top and bottom of the pepper too (the petals of the flower).
I keep a produce bag or a mixing bowl next to my cutting board for my garbage (which I should be composting instead of just throwing away). I learned this from watching Rachel Ray's 30 Minute Meals while I was in college. Rachel taught me a lot about cooking back then. Right now I'm a little burned out on her. She has cooking shows, a magazine, cookbooks, and even her own talk show. Oh, and a line of pet food. One can even go out to Kohls and buy the official plastic Rachel Ray garbage bowl to put next to a Rachel Ray cutting board. I'm assuming she has her own cutting board. I don't think I've actually seen it.
Anyway, keeping the garbage bowl or bag on the counter keeps me from making such a mess and keeps me from having to go back and forth to the actual trash can.
Happy pepper cutting.