I enjoy cooking with fresh green chili peppers. They lift a mundane dish to being good. When using fresh hot chili peppers here is what I do to prevent the active ingredient of capscium from burning my skin. I wear a pair of disposable rubber gloves. Frequently I will also chop and freeze any extra chilis and put them in a plastic bag in the freezer.
As for small dried red chilis I fry a few in a bit of oil and then remove them and add onions or add along with a bay leaf and other spices to a stew or vegetable dish.