Preheat your oven to 250 degrees.
Preheat a 3 quart or larger dutch oven or large roasting pan over medium heat on the stove.
Cook the bacon, browning it on both sides but remove it before it renders all its fat and gets hard. We want bacon that we can cut, not crumble. You will probably need to do the bacon in two batches. Remove to a cutting board, and chop when cooled.
Add the onions and peppers and cook them until they soften.
Add the bacon back along with the rest of the ingredients.
Cook for 2 hours or more in the oven, stirring occasionally.
Remove the bay leaf. Taste and adjust the flavors as you see fit. If you like it spicier, add some hot sauce. Add more molasses if you like it sweeter, or salt if you think it needs it. Cook it longer if you want it thicker, or add some water if you want it thinner.