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Preheat the oven to 400°F.
Slash an "X" through chestnuts; on the flat side of nut.
Place them, cut side up on a cookie sheet and roast for 20 minutes.
When cool enough to handle, remove husk.
Cut chestnuts into small pieces and set aside.
Clean and trim sprouts. If sprouts are large, cut in half vertically.
Heat oil in a large skillet and sauté red pepper for 3 minutes.
Add Brussels sprouts and sauté 3 more minutes.
Add 1/4 cup water, cover, and steam about 5 minutes.
Remove lid, stir in chestnuts, and cook, uncovered, until chestnuts are warmed through and sprouts are tender, being careful not to overcook sprouts. Serve immediately.