1. Place apricots in a medium bowl and pour the water over them. Cover with plastic wrap and let sit overnight.
2. Drain and reserve the apricots' soaking water.
3. Place the apricots in a pot on the stove with 1 cup of the soaking water and the lemon juice (I suggest using the rest of the "apricot nectar" as a mix-in for still or bubbly water- it's delicious). Add the sugar, the vanilla bean seeds, and the chile pepper and bring to a boil.
4. Reduce heat to a simmer and cook, stirring occasionally, until the jam has thickened: 30-40 minutes.
5. Taste the jam: you can add a bit more sweetener if you like; note that it may taste very spicy right now, but don't worry- the chile flavor will mellow out with time. Spoon into glass jars and store in the refrigerator, where the jam will last for at least a few weeks.