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Slice the mini sweet peppers and shallots into rings. Separate the shallot slices into rings.
Combine the sliced peppers and shallots and divide them evenly between two clean pint jars.
Add the remaining ingredients to a medium saucepan and bring the mixture to a boil. Cook until all the sugar is dissolved.
Pour the hot mixture evenly over the peppers and shallots.
Close jars with seals and rings. Allow filled jars to stand at room temperature for 24 hours. Then refrigerate for an additional 24 hours before use. Keeps up to one month in refrigerator.