Prepare the Butternut Squash: Preheat the oven to 400°F (200°C). Toss the butternut squash cubes in a tablespoon of olive oil, salt, and pepper. Spread them on a baking sheet and roast for 25-30 minutes until tender and slightly caramelized.
Roast the Red Peppers: While the squash is roasting, place the red bell peppers on another baking sheet. Roast in the oven for about 20-25 minutes until the skin is charred. Remove from the oven, place in a bowl, cover with plastic wrap, and let sit for 10 minutes. This will help loosen the skin for easy peeling.
Sauté Aromatics: In a large pot, heat the remaining tablespoon of olive oil over medium heat. Add the diced onion and sauté until translucent, about 5-7 minutes. Add the minced garlic, cumin, and smoked paprika, and cook for another 1-2 minutes until fragrant.
Blend the Soup: Once the butternut squash is roasted, and the red peppers are peeled and seeded, add both to the pot with onion and garlic. Pour in the vegetable broth, and bring to a simmer for about 10 minutes to meld the flavors.
Finish the Soup: Remove the pot from heat. Using an immersion blender, puree the soup until smooth. If you prefer a creamier texture, stir in the coconut milk and mix well. Adjust the seasoning with salt and pepper to taste.
Serve: Ladle the soup into bowls. Garnish with chopped cilantro or parsley for a fresh touch.