Baked Chicken Meatballs with Peperonata

INGREDIENTS

• 1 1/2 tablespoons drained capers
• 3 slices Italian bread, torn into pieces (1 cup)
• 1/8 teaspoon hot red pepper flakes
• Accompaniment: garlic bread made from remainder of Italian loaf
• 1 tablespoon tomato paste
• 1 pound ground chicken
• 1 1/2 tablespoons extra-virgin olive oil, divided
• 3 ounces sliced pancetta, finely chopped
• 2 tablespoons extra-virgin olive oil, divided
• 1/3 cup milk
• 3 red bell peppers, cut into strips
• 3 tablespoons finely chopped flat-leaf parsley
• 1 teaspoon red-wine vinegar
• 1 small onion, finely chopped
• 1 large egg
• 1 small garlic clove, minced