Working with one chile at a time, peel off and discard the blackened skin. The skins should come off very easily and quickly to remove most blackened bits. You can rub the skin off in a pan of water or under cool running tap water. Discard the stem and retain or remove the seeds.
Some people like to use a paper towel to rub off the skin instead of their bare hands.
The peeled chiles are now ready to chop-up and be used.
You can always reduce the heat of a chile by removing the veins or pith that run the length of the chile on the inside, and the seeds. You can also add a little honey to your chile sauces and stews if you find them TOO hot. Just be careful not to add too much.
WARNING: Since capsicum found in chile peppers can be an irritant to skin and eyes, here are some precautions you can take: use safety glasses, remove contact lenses before peeling, wear gloves and wear a long-sleeved shirt.