Char bell peppers oven gas flame or in broiler until blackened on all sides. Wrap in paper bag and let stand ten minutes. Peel and seed. Rinse if necessary; pat dry. Puree in processor until smooth. Mix in hot pepper sauce and cayenne pepper. Transfer to bowl. Place dry mustard in medium bowl. Add water, both vinegars and mustard seed, whisking until mustard is smooth. Cover and let mellow two hours. Combine Sherry, wine, garlic, salt, black pepper and allspice in heavy nonaluminum saucepan. Cover partially and simmer 7 minutes. Strain sherry mixture through fine sieve into mustard. Stir in honey and dried thyme. Return to saucepan. Set saucepan in larger pan of simmering water. Cook until consistency of mayonnaise, stirring frequently, 20 to 30 minutes. Whisk in red pepper puree. Pack mustard into hot jars. Top each with bay leaf and thyme sprig. Cool completely. Seal tightly and refrigerate one week to mellow flavors. (Can be stored in refrigerator three months.) From Bon Appetit, Dec '85. Makes 3 cups