Grind onions and peppers; drain juice and discard. Combine all ingredients in large pan and cook until thick, stirring regularly to avoid sticking to bottom of pan. Ladle into jars leaving 1/4-inch headspace, wipe jar rim clean and adjust two-piece caps.

Process pints in a boiling water bath for 10 minutes; quarts for 15 minutes.

Altitude adjustment: Add an extra 5 minutes of processing time for every 6000 feet of altitude.