[dmforcier]

1) I tried the MG Seed Starter Mix. It's okay, but I don't see a compelling reason to use it instead of the Potting Mix. (And it's more expensive, IIRC.) You can leave the seedlings in it until they need to be moved into the ground.

2) I wouldn't fertilize yet at least until you see true leaves. (Not familiar with Tomato Tone; I use MG All Purpose (the blue stuff) at 24-8-16 for peppers, and coincidentally for tomatoes. But there is also a less Nitrogen heavy version which claims to be more oriented toward veggies like toms.) Some people say to use 1/4 strength fert after leaves develop, but there are varied opinions on the matter. Since the Starter Mix already has some ferts, not need to do anything yet.

Don't ditch the decapitated plant. I won't tell you the full story of Immortal Beloved, but suffice it to say that it started life without cotyledons - just a stem - and after passing through many travails became one of my biggest and best Ghost peppers.