Mystical Meatballs

1 red bell pepper, seeded, diced
1 medium shallot, sliced
1/4 cup dry white wine or sweet vermouth
2 tablespoons extra virgin olive oil
1 tablespoon minced fresh tarragon
1 teaspoon kosher salt
1/8 teaspoon ground black pepper
3 tablespoons water
1/4 teaspoon white wine vinegar

Reserve 1 tablespoon of the diced red pepper to garnish the finished dish. Combine all the remaining ingredients except the reserved red pepper and vinegar in a small saucepan. Cover and simmer until red pepper is tender, adding water if mixture is dry, about 25 minutes. Puree red pepper mixture in blender or food processor until smooth sauce forms. Return sauce to saucepan. Mix in vinegar. Keep warm.

Excellent with salmon.