In a nonstick saucepan, combine water, apple cider vinegar, and white sugar over medium heat. Stir until it reaches a gentle boil.

Once boiling, add the finely diced red and green bell peppers, then reduce the heat to low. Simmer for 10-15 minutes until the jelly thickens.

Remove from heat and allow the jelly to cool completely at room temperature.

Place a chilled block of cream cheese on a cutting board and mold it into a skull shape.

Carve out eye sockets and a nose with a knife or spoon, and create cheekbones with scrap cream cheese.

Spoon the cooled pepper jelly into the eye sockets and nose cavity, allowing it to overflow slightly.

Transfer the skull to a serving platter and surround it with crackers or chips.