Balkan Ratatouille (đuveč) is a rich vegetarian dinner dish. Meat lovers are welcome to add grilled chicken or beef on the side. Let this one simmer for a while and then dip in, not with utensils but with bread.
In a large, deep pan (or shallow pot) heat oil and butter over medium high. Add onion and carrots and sauté until translucent.
Add garlic, tomatoes, paprika, sugar and bay leaves. Sauté 5 to 10 minutes, then add water. Simmer 5 minutes.
Add bell peppers, eggplant, salt and pepper. Mix thoroughly. Cover (⅘ths of the way) and simmer on low for 40-50 minutes. (If a lot of ratatouille evaporates add a little more water.)
Take the bay leaves out, garnish with parsley. Serve over rice, polenta or by itself.