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How to make a coding challenge to hire a new engineer?

We're a very small team with little experience in hiring but got approval for a new engineer. Basically HR will look for people through the usual channels and I think we have a reasonably good job description. Unfortunately the coding challenge (a 30h+ take home) is atrociously difficult and doesn't really reflect what we do. On the other hand I think the false positive rate would be low. FWIW it's a Linux application and it might be difficult to only count on experience from the CV.

Any ideas how to build a good challenge from scratch and what time constraints are reasonable?

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