Donna Falconnier, Nutrition and Wellness Educator, supplied this answer to your question: "What makes chilies so hot is a substance called capsaicin. The more capsaicin, the hotter it is. Capsaicin is an oil and thus poorly soluble in water but more soluble in fats and oils. The "hot" of peppers can be cooled down the most effectively with such items as rice, cheese, butter, yogurt, sour cream, or milk. To reduced the "flames" you can "neuter" the pepper by paring away the interior ribs and removing the seeds. The seeds and the white inner veins are the hottest part of a pepper. When doing this to really hot peppers it is best to wear gloves so there is no skin contact. Once something hot is put into a recipe the only way to make it less is to add more neutral ingredients and dilute it."