Might be watering them inadequately, missed the peak growing season, which is summer (most likely, though some are still growing) impatient or all of the above but I feel like that's the size they grow, apparently I've read somewhere that they're of the "ornamental" variety which means they're that size when they've matured, but the picture shows a bigger size. They're Thai Dragon Chilies. Unless I wait until next year to see if they grow bigger or to move them to a bigger pot.
Those are super easy to turn into hot sauce.
Just cut the tops & stems off, and stuff them in a jar.
Boil some vinegar in a pot on the stove, mix in a bit of salt, and pour over the peppers.
Let it cool down & then throw the jar full of vinegar and peppers into your refrigerator for 2 weeks.
Done.
Use the salty, hot pepper infused vinegar like you would any other hot sauce.