Turn on a gas stove and roast bell peppers over the open flame until soft and blackened, about 5 minutes per side. Peppers should emit steam when pressed. You can also clean and coat with coconut oil and broil. Transfer peppers to a bowl, cover, and let cool to room temperature.
Score the tomatoes on top and boil for several minutes. Then let cool and peal the skin off. Dice the tomatoes and place in a bowl.
Combine oil and 1/2 of the garlic in a skillet. Turn heat to medium and cook, stirring constantly, until garlic just starts to turn golden brown, about 3 minutes. Move garlic to a ramekin using a slotted spoon, leaving all the oil in the skillet.
Toast bread in the oil until golden brown, 2 to 3 minutes.
Peel peppers under running water. Cut peppers open and remove the seeds if not cut and cleaned before. Chop into cubes and transfer to a food processor along with the chopped tomatoes and chili pepper. Add garlic, bread cubes with oil, almonds, hazelnuts, vinegar, paprika, and salt. Pulse on and off until sauce is well combined and reaches your desired texture. Save some of the nuts as a garnish.
Transfer sauce to a bowl. Cover with plastic wrap and refrigerate to intensify the flavors, 8 hours to overnight.