I just made my first Jalapeno jelly, this is recipe I used, not sure about substituting dry for liquid.
PEPPER JELLY (Powdered Pectin Recipe)
Source: Ball "Blue Book"
7 sweet green bell peppers
1 jalapeno pepper
1 1/2 cups vinegar, divided
1 1/2 cups apple juice
1 package powdered pectin
1/2 teaspoon salt
5 cups granulated sugar
Green food coloring, optional
Wash peppers, remove stems and seeds, cut into 1/2 inch pieces (suggest wearing rubber gloves while handling jalapeno, juices can "seep" into skin and resist washing out right away)
Puree half of peppers and 3/4 cup vinegar in blender or food processor, pour into large bowl. Puree remaining peppers and vinegar and add to other. Stir in apple juice. Cover and refrigerate overnight.
Strain pureed mixture through damp jelly bag or several layers of cheesecloth. Measure 4 cups juice, adding additional apple juice if needed to make 4 cups. Combine juice, pectin, and salt in large saucepan. Bring to boil over high heat, stirring constantly. Add sugar, stirring until dissolved. Return to rolling boil and boil hard 1 minute, again stirring. Remove from heat, skimming foam if needed. Add a few drops of food coloring if desired.
Ladle hot jelly into hot, sterilized half pint jars, leaving 1/4 inch head space. Wipe jar lids and adjust two piece lids. Process 5 minutes (or longer if altitude adjustment is needed) in boiling water canner. Yield: about 6 half pints.