Brown the ground beef in a large pot over high heat until crumbly and no longer pink, about 7 minutes. Break the meat apart as it cooks so no large chunks remain.
Take the habanero peppers, stab them with a knife and add them whole into the pot. If you do not like spicy I DO NOT recommend using these!!! Stir in the chili seasoning and chili powder, and stir for 30 seconds. Add the onion, red pepper, and green pepper. Cook and stir until the onion is tender, about 5 minutes.
Now this next part is a little messy so be careful. Add the whole tomatoes by crushing them by hand and tearing them into little pieces. Be careful when you are squeezing them because they will shoot out juice and seeds. Stir in the beef cubes, beans, and tomato sauce. Season with sugar, red pepper flakes, salt and pepper.
Bring to a boil, then reduce heat to a simmer, cover, and cook gently, stirring occasionally until the beef cubes are very tender, about 2 hours. Add water if needed to keep the chili from getting too thick and burning.
When it is finished REMOVE the habaneros! This is VERY IMPORTANT!!