Every October, the historic downtown streets of Palestine, Texas transform into a fiery playground of flavor, fun, and festival energy. The Hot Pepper Festival — lovingly dubbed “The Hottest Little Festival in Texas” — draws crowds to experience everything from pepper-eating contests to arts & crafts, live music, vintage car shows and mouth-watering food vendors.
Whether you’re strolling the vendor-lined blocks, sampling spicy treats, or just soaking up the small-town fall festival atmosphere, this event radiates Texas heat in the best way.
And because you’re into great food (especially on ParchmentPaper.com style), we’re bringing you a special sauce recipe inspired by the festival’s pepper-powered spirit — prepared with parchment for ease and flavor. Let’s get started!
Festival Highlights
Here are some of the best reasons to check out the Hot Pepper Festival:
Vendor market with arts & crafts + unique food trucks and pepper-themed treats.
Pepper-eating contests and other bold-flavor competitions — perfect for spice lovers.
Live music, a Kids Zone, beer garden, car/truck/bike shows, parade through historic downtown.
Free admission to many parts of the event.
The perfect backdrop for food-blog inspiration, recipe creation, and sharing your culinary take-aways.
Parchment-Roasted Pepper Sauce Recipe
A sauce you can craft at home remembering the festival’s spirit of heat and hometown charm — using parchment paper to roast your peppers for simplicity, less mess, and elevated flavor.
Ingredients
4 large sweet red bell peppers
2 large hot-tertiary peppers (e.g., jalapeños or if you dare, habaneros) — adjust to your heat preference
1 small red onion, quartered
3 garlic cloves, peeled
2 tbsp olive oil
1 tsp smoked paprika
½ tsp cumin
¼ tsp sea salt (adjust to taste)
1 tbsp honey or maple syrup (to balance heat)
1 tbsp apple cider vinegar
½ cup chicken or vegetable broth (or more for thinner consistency)
Fresh cilantro (optional, for garnish)
Directions
1. Preheat your oven to 425 °F (220 °C).
2. On a large sheet of parchment paper, place the bell peppers, hot peppers, red onion, and garlic. Drizzle with olive oil, then sprinkle with smoked paprika, cumin, and salt.
3. Fold the parchment into a loose pouch (a “parchment-roast” packet) so the veggies are sealed but steam can build.
4. Roast in the oven for ~20 minutes, or until peppers are softened and slightly blistered.
5. Carefully open the pouch (steam will escape!). Remove the hot peppers and seeds (if you want less heat), and transfer everything into a blender: roasted peppers, onion, garlic, honey/maple syrup, vinegar, and broth.
6. Blend until smooth. If sauce is too thick, add more broth to reach your desired consistency. Taste and adjust salt, heat, or sweetness as needed.
7. Pour into a small saucepan and gently simmer on low for ~5 minutes to let flavors meld.
8. Serve warm (or chilled) — drizzle over grilled meats, tacos, roasted veggies, or use as a bold condiment. Garnish with cilantro if desired.
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Why Use Parchment?
Parchment paper helps roast peppers with minimal cleanup and less mess from blistering skin or drips.
It traps steam and concentrates flavor, giving a deep roasted pepper taste without needing a full outdoor grill or flame.
Variations
Smoky chipotle version: Replace half the roasted hot peppers with chipotle peppers in adobo, reduce honey/maple to ½ tbsp for added heat.
Mild version: Use only sweet red and orange bell peppers; omit hot peppers entirely and increase smoked paprika to compensate for smokiness.
Herb-infused version: Add a handful of roasted fresh thyme or oregano before blending for an herbal twist.
Creamy version: After blending, stir in ¼ cup sour cream or Greek yogurt off-heat for a creamy pepper sauce.
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Printable Recipe Card
PARCHMENT-ROASTED PEPPER SAUCE
(Yields ~2 cups)
Ingredients:
4 large sweet red bell peppers
2 hot peppers (jalapeño/habanero)
1 small red onion, quartered
3 garlic cloves
2 tbsp olive oil
1 tsp smoked paprika
½ tsp cumin
¼ tsp sea salt
1 tbsp honey or maple syrup
1 tbsp apple cider vinegar
½ cup broth (chicken or veggie)
Fresh cilantro (optional)
Directions:
1. Preheat oven to 425 °F.
2. On parchment, place peppers, onion, garlic; drizzle olive oil; sprinkle spices & salt.
3. Fold parchment into pouch; roast ~20 mins until peppers soften/blister.
4. Open pouch, remove hot pepper seeds if desired.
5. Transfer to blender: roasted items + honey/maple + vinegar + broth; blend until smooth.
6. Simmer gently on low ~5 mins.
7. Serve warm or chilled; garnish with cilantro.
8. Store in fridge up to 1 week.