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In a large bowl combine eggplant and 1 tablespoon kosher salt; toss to coat. Transfer to a colander and set colander over the large bowl. Let stand for 1 hour. Rinse and drain eggplant in colander, pressing eggplant with a wooden spoon to remove excess liquid.
In a large stainless-steel, enamel, or nonstick heavy pot heat oil over medium-high heat. Add sweet peppers, onion, and garlic; cook and stir until onion is tender. Stir in eggplant, tomatoes, vinegar, sugar, capers, crushed red pepper, and 1/2 teaspoon salt. Bring to boiling, stirring frequently; reduce heat. Simmer, uncovered, about 20 minutes or until thickened, stirring frequently. Remove from heat. Stir in basil, lemon peel, and lemon juice.
Ladle hot caponata into hot sterilized half-pint canning jars, leaving a 1/2-inch headspace. Wipe jar rims; adjust lids and screw bands.
Process filled jars in a boiling-water canner for 15 minutes (start timing when water returns to boiling). Remove jars from canner; cool on wire racks.