In a heavy 12-inch skillet, melt butter with olive oil over moderate heat. Add onions and cook them, turning frequently, for 10 minutes, or until they are soft and lightly browned. Stir in peppers. Reduce the heat, cover, and cook for 10 minutes.
Add tomatoes, vinegar, salt, and a few grindings of black pep-per; cover the pan and cook for another 5 minutes. Then cook the vegetables uncovered over high heat, stirring gently, until almost all the liquid has boiled away. Serve the Peperonata as a hot vegetable dish, preceding or along with the main course, or refrigerate and serve cold as part of an antipasto or as an accompaniment to cold roast meats or fowl.
*To peel peppers easily, place on cookie sheet and broil for about 5 minutes until skins turn black. Put peppers in a paper bag for about 15 minutes. Peel.
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