While removing the seeds and membrane is step one, if you want to take the heat out of a pepper you need to get as much capsicum out as you can...and following these steps will do it, leaving you with the great taste of the pepper without burning anyones mouth. We do habanero peppers as well and people are amazed at the flavor of the pepper without the heat.
The "heat" in a pepper comes from capsicum which is located in the seeds and white membrane, but also in the blisters on the layer of skin INSIDE the pepper...note: wear gloves and consider working under running water for steps 1-3
1) slice pepper in half length ways
2) remove seeds and membrane
3) scrape the inside of the pepper
4) soak the peppers in tequila or sprite for 30-60 minutes. If you soak longer than this, peppers will loose color and start to soften.
If you don't have one, Amazon has several "de-seeder" tools, the two that I use are the Norpro 121 Grip EZ Jalapeno Corer and the King Kooker JRC Jalapeno Corer Tool. These allow me to cut the stem off, or even better, almost off, clean out the seeds and membrane and then give them a good scraping before soaking, filling them with whatever is on the menu, replacing the stem, wrapping with bacon and putting in my holder on either the grill or smoker!