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Dice Pancetta into small pieces
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Sprinkle olive oil in fry pan and cook Pancetta over medium heat
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Remove and let drain on a paper towel
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Clean the Brussel Sprouts and peel off the outer layer
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Cut the Brussel Sprouts in half
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Dice the shallot and set aside
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Using the same pan from the Pancetta, brown the Brussel Sprouts face down in the pan. Add a little more olive oil to the pan so it doesn't burn. This should take 8-10 minutes depending on how brown you like it.
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Add shallots and water to pan. Cover pan and let Brussel Sprouts and Shallots soften. This takes about 6 minutes.
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Remove from the pan and place in temporary bowl
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Add Balsamic Vinegar to pan and cook down. This will thicken up the Balsamic Vinegar. This will take 2-3 minutes.
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Add the Brussel Sprouts, Shallots and Pancetta back into the pan and mix.
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Serve warm