A new Dunedin restaurant serves moonshine made from the world's hottest chilli. Dunedin reporter Hamish McNeilly tries it out.

A new Dunedin restaurant is putting moonshine on the menu, including some made from the world's hottest chilli.

Moonshine distilled in a Mosgiel garage is now being sold at Prohibition Smoke House, which just opened its doors.

The moonshine, which has already attracted commercial interest from Australia and Asia, is "so smooth, it is phenomenal", executive chef Greg Piner says.

Satan's Breath is one of a series of new moonshine flavours on sale in Dunedin.

"I reckon it will be the next 42 Below."

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The man behind the moonshine was former Canadian Darcy Schack, who could not believe it when he saw a still for sale in New Zealand.

In New Zealand, home distillation is legal for personal consumption, but not for private sale.

"I walked out with a still and I have been making whiskey ever since."

Like southern New Zealand's famed moonshine operations in the Hokonui Hills, there was "a rich moonshining history in Canada".

"Al Capone actually had a tunnel kilometres long to smuggle moonshine from Canada to the United States."

Using a still, it was important to know what produced methanal and ethanol "because you do not want to create dangerous liquor", he said.

"It is an art form. You make your first batch and the only thing you want to do with it is clean your oven."

The alcohol, made from a corn mash, is distilled two or three times, before flavours are added later.

Flavours include Sumatran espresso, salted caramel, and 'Satan's Breath', which contains the world's hottest chilli pepper, 400 times hotter than Tabasco sauce.

Schack sells the liquor at the Otago Farmer's Market, and plans to sell it at liquor stores and overseas.