Paraguayan cornbread is often baked in the drippings from a roast chicken, something like a Latin American Yorkshire pudding. Our version of this South American dish, while we forgo the drippings, is nicely dense, very moist, and absolutely delicious with a roast, some chili, or soup.
Preheat the oven to 375°F. Grease a 9" x 9" pan that's at least 2" deep; a shallow 2-quart casserole dish; or a 10" cast-iron skillet (at least 2" deep).
In a medium skillet over medium heat, melt the butter and pour in the oil. Add the onions and cook until translucent, stirring occasionally. If you're going to bake in a 10" cast-iron skillet, go ahead and use it to sauté the vegetables.
Add the peppers and cook for 1 more minute. Remove from the heat and cool to room temperature. If you're using the same skillet to bake the bread, remove the vegetables. There's no need to wash the pan; just wipe out any stray bits of stuck-on veggie.
In a large bowl, combine the cornmeal and milk.
Stir in the sugar, cottage cheese, eggs, salt, pepper, and baking powder.
Stir in the corn kernels and cooled onion mixture.
Stir in the cheese, and then transfer the batter to the prepared pan. If you're using the same skillet in which you sautéed the vegetables, grease it again, using non-stick vegetable oil pan spray or shortening.
Bake for 40 to 45 minutes (in a 9" x 9" pan), or 30 to 35 minutes (in a 10" cast-iron skillet), until the center feels set when lightly touched with your finger, and the edges are beginning to brown.
Remove from the oven, cut in squares or wedges, and serve warm.
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