Preheat and prep. Heat the oven to 300°F (150°C). Lightly grease a 12-cup muffin pan with cooking spray or oil.
Set a large roasting pan or deep baking sheet on the middle rack.
Sauté the peppers. Warm the olive oil in a small skillet over medium heat. Cook the diced red pepper for 3–4 minutes, until slightly softened. Remove from heat and let cool for a minute.
Blend the base. In a blender, combine egg whites, cottage cheese, Monterey Jack, Parmesan, garlic powder, onion powder, smoked paprika (if using), salt, and pepper.
Blend for 20–30 seconds until smooth and lightly frothy.
Add mix-ins. Stir the cooled red peppers and green onion into the blended mixture. Don’t blend them—this keeps visible bits for texture and color.
Fill the pan. Divide the mixture evenly among the muffin cups, filling each about 3/4 full. Give the pan a gentle tap on the counter to release any large air bubbles.
Set up the steam bake. Carefully slide the roasting pan out slightly and place the filled muffin tin inside it.
Pour hot water into the roasting pan until it reaches about halfway up the sides of the muffin tin. This creates a gentle, moist heat.
Bake. Bake for 22–28 minutes, until the bites are just set in the center and barely jiggle. They’ll continue to firm up as they rest.
Cool and release. Let the bites sit for 5 minutes.
Run a thin spatula or knife around the edges to loosen, then lift them out. If any stick, let them cool a bit longer and try again.
Serve. Enjoy warm as-is, or with a little hot sauce, salsa, or avocado slices.