As far as the pot, yes there are drainage holes in the bottom and a layer of rock at the bottom. When I water it, water always comes out the bottom so I know that it is draining. I used a succulent potting mix, but I could definitely add perlite when I re-pot it this time around. What do you mix the perlite with? A succlent potting soil, or regular potting soil? I will take your advice as far as cutting it down. When I finally pinched the leaves I felt that it was getting far too tall on one stem, but pinching was obviously a step I should have taken a long time ago! Hopefully this works well. :) Thank you!

It always tried to bloom too late here and didn't recover to bloom in the spring. That is why it not longer has a spot in my garden. In my climate it was one of those 'never ever bloomers.' It's great if it likes your climate. Walter Moores

In my experience, peonies without much sun grow leaves ok but just don't bloom. I've grown 10 peonies in pots (just over a summer) and I found I was overwatering them in time to save the majority of them, but 2 rotted & died. Sue

I live in SoCal and I don't think the heat itself is the issue but the blistering Arizona sun. Was just in Tucson and it was 107 and the sun was withering. You might try keeping them out of direct sunlight until they get a little stronger. I had the same issue with my peppers last summer. Once they grew a bit and established themselves they couldn't get enough light and heat. And be careful not to overwater, but in the summer heat where you are I doubt that will be a problem unless you keep them flooded.. If you have them in the ground the sandy soil should provide great drainage, which peppers like. They should grow really well, but won't produce fruit until it cools off in the evenings. Then, watch out! Good luck.