I'm growing both Bhut Jolokia and Naga Morrich from different seed sources. They are supposed to be the same variety, but I wanted to test that. We had a lot of rain recently and all the peppers fell off the Bhut Jolokia plant, but the Naga Morrich plant is fine. So, I wonder if they're really the same or not.
If Naga Morrich is indeed Bhut Jolokia I am here to tell you it is one hot pepper. It has good flavor (I prefer it's flavor over habenaro). The heat is deceiving. Initially it doesn't seem intollerable, but as time passes heat really intensifies. It is the real deal heat wise.
It has several uses cooking. Small amounts can be used to for heat in many dishes including chili and salsas. It has been featured a few times on Man vs. Food. And, you can use it to inflict pain on The Pepper Pack.
OBTW, you might want to consider wearing latex gloves when you're cutting and handling it.
Randy