In this cocktail, the classic margarita gets a spicy upgrade with DIY jalapeño-infused tequila. The Baxter Street is a wildly popular drink at Karl Franz Williams's bar, 67 Orange Street in NYC. After you take just one tart and fiery sip, you'll understand why!
Jalapeño tequila: Trim stem ends off jalapeños, then slice each pepper in half; remove and discard seeds from 1 pepper. Place all four halves in the 2-quart container and add the entire bottle of tequila. Press down on the peppers with a muddler to break them up, releasing their flavor and heat. Stir, then let rest 15 minutes.
After 15 minutes, taste the tequila for heat and jalapeño flavor (to avoid over-infusion, which will make the tequila too spicy). Place a strainer over the wide end of a small funnel; then pour the infused tequila back into the bottle through the funnel. (The strainer will catch the jalapeños and seeds, which can be discarded.)
Cocktail: Add lime juice, agave, and infused tequila to a cocktail shaker. Meanwhile, fill a rocks glass with ice cubes to chill. Add additional ice cubes to the shaker, then cover and shake briefly, about 5 seconds. Open the shaker and, using a strainer, pour the cocktail into the ice-filled glass. Garnish with a lime wedge and serve immediately.