Within the fruit, capsaicin is present in the placenta of the pepper, the white pith the seeds are attached to, which we call ribs or veins. To a lesser extent, it can also be found in the other fleshy parts of the fruit. Contrary to what you might believe, the seeds themselves do not produce any capsaicin.
BEST FOR CHILI: GHOST PEPPER HOT SAUCE
To make this paprika substitute, combine one part of tomato sauce with two parts of chili powder. Blend them well before measuring.