Remedies for the Chile Pepper Bite or Burning Mouth:
There are several remedies for the effects of eating a pepper that is too hot for you, something that is usually discovered when it is too late. (Eventually, you can build up tolerance to the heat of peppers, and will be able to eat hotter and hotter chilis without having to resort to these cures.) Many people recommend drinking tomato juice or eating a fresh lemon or lime, the theory being that
the acid counteracts the alkalinity of the capsaicin. Some people won't begin eating hot peppers without a pitcher of cold water handy, though this is not the best idea. The capsaicin, which is an oil, does not mix with the water but is instead distributed to more parts of the mouth. More useful solutions include drinking milk (rinsing the mouth with it as you sip) or eating rice or bread, which
absorb the capsaicin.
From: Peppers A Cookbook by R. Berkley, published by Simon & Schuster, 1992.