Wash peppers; remove stems and seeds. Purée the peppers and basil with 1 cup vinegar in a food processor. Combine the purée with remaining 1 cup of vinegar and the sugar in a large saucepan.

Bring to a boil and simmer for 10 minutes, stirring constantly. After 10 minutes, stir in the pectin and return to a rolling boil (a boil that does not stop while stirring) Boil hard for 1 minute, stirring constantly.

Ladle hot jam into hot jars, seal and process for 10 minutes in a hot water bath.