1. In a large, ovenproof skillet, warm the olive oil over medium heat. Add the onion and the garlic and cook until the onion becomes translucent, about 5 minutes. Add the green and red peppers and cook for 2 minutes. Add the paprika, piment d'Espelette, sugar and bay leaf and cook, stirring occasionally, until fragrant, about 2 minutes longer.

2. Preheat the oven to 400˚. Add the tomatoes and their juice to the skillet and bring to a simmer. Reduce the heat to low and simmer, stirring occasionally, until the tomatoes break down, about 20 minutes longer. Discard the bay leaf and season with salt and pepper.

3. Bring the sauce back to a simmer. Crack the eggs over the sauce so that they are evenly distributed across the surface. Transfer to the oven and bake until the egg whites are set but the yolks are still soft and runny, about 7 minutes. Serve immediately with crusty bread for dipping.

Note: To roast the peppers, place the peppers on a hot grill or hold them over a gas flame on the stove until black and blistered on all sides. Transfer the peppers to a large bowl, cover with plastic wrap and let steam for 15 minutes. Peel, seed and stem the peppers. Set aside until ready to use.