solution, to answer your questions:
1. Water only when the plant needs it. Let the mix dry out between waterings. Neither toms nor chillies - not many other things - benefit from overwatering. In addition, the fruit's heat is basically dictated by its genes, though cultural factors can have an impact. But a mild variety won't produce a hot chilli. You'd need to start with a hot variety.
2. There's no real evidence that plucking smaller leaves achieves anything.
3. Like toms, chillies need as much warmth and sunlight as they can get. Get the plant outside if you can, even inside a small greenhouse with some ventilation.
4. Like toms, chillies benefit from a fertiliser that's low in N (nitrogen), higher in P (phosphorous), and even higher in K (potassium). Too much nitrogen and you'll get foliage instead of fruit. Phosphorous is good for the plant's overall health, root structure, and flower development. Potassium aids the development of fruit.
The product you've bought has an NPK of 3:2:6. It's not too bad in the sense that the potassium percentage is double the nitrogen. A specialty tomato fertiliser with an NPK along the lines of 3
9 would be better.
But, anyway, you can scale down the manufacturer's recommended dosage. They cite 4.5l or about a gallon. Divide by, say, 4 to give you a manageable amount, a litre, dividing the amount of product by the same amount.
You probably won't use a litre when you fertilise. A litre might last two feeds.
As with overwatering, you need to be careful about overfertilising. Chillies, like toms, won't do their best if overfertilised. When they produce fruit, they're seeking to reproduce themselves, and they're much more likely to do so if they think they need to - in other words, if they're feeling vulnerable. Tough love works best in terms of both watering and fertilising. I wouldn't fertilise more than once every couple of weeks.