Bring a large saucepan of salted water to a boil. Add the potatoes and cook until just tender, about 15 minutes. Drain and coarsely chop the potatoes.
In a large heavy skillet, preferably cast iron, melt 1 tablespoon of the butter in the vegetable oil. Add the onion and red and green peppers and cook over moderately high heat, stirring, until wilted, about 4 minutes. Mix in the potatoes and press into an even layer in the skillet. Cook over moderate heat until browned and crusty on the bottom, about 5 minutes. Season with salt and pepper. Turn the potatoes, adding the remaining 1 tablespoon butter to the skillet as you turn, and cook until well browned, about 5 more minutes. Season with salt and pepper and serve with hot sauce.
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