This is a traditional Basque cooked sauce that is commonly used to poach eggs in. You can also serve it over pasta or just dunk bread in it and eat with some nice soft cheese.
Thinly slice 1 large or 2 medium onions and saute in 3 T. olive oil in a heavy-bottomed pot or cast-iron skillet.
Mince 2 cloves of garlic. Core 3-4 sweet peppers and cut into thin slices. Add to the pan or pot when the onions are soft.
Stir in 1 T. fresh thyme leaves, 2 T. minced Italian parsley, and 1 dried bay leaf. Reduce heat and cover to cook for 10 minutes or until the peppers are soft.
Dice 6 medium tomatoes. When the peppers are soft, add them to the pot. Cook for 10 minutes, until the tomatoes fall apart and release their juices. You don’t want the liquid to cook down too much or the sauce to thicken. Season with salt and pepper and remove the bay leaf.
If you are making breakfast, as this point simply crack 4-6 eggs directly into the sauce, making a small hole for each. Continue to simmer the sauce until the egg whites are cooked but the yolks are still soft.