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Preheat the oven to 350°. In a small bowl, mix the lemon juice and vinegar. Add the bread cubes and toss to coat; let the bread soak up the liquid.
Meanwhile, spread the walnuts in a pie plate and bake until lightly toasted, about 5 minutes.
In a large skillet, heat 2 tablespoons of the olive oil. Add the bell peppers, water, garlic and chile and season with salt. Cover and cook over low heat, stirring occasionally, until the peppers are tender, about 10 minutes. Uncover and cook over high heat, shaking the skillet, until all the liquid has evaporated, about 1 minute; discard the dried chile.
Transfer the peppers to a food processor and let cool until warm. Add the soaked bread and pulse to a thick, coarse paste. Add the walnuts; pulse just until coarsely ground. Scrape the dip into a bowl and season with salt. Drizzle with the remaining 2 tablespoons of olive oil and serve.
One Serving 282 cal, 24 gm total fat, 2.9 gm saturated fat, 16 gm carb, 3 gm fiber.