In a large pot, heat the olive oil over medium heat. Add the diced onion and sauté for about 5 minutes, until softened.
Add the minced garlic and grated ginger to the pot, stirring for another minute until fragrant.
Incorporate the chopped red bell peppers and cubed butternut squash into the pot, mixing everything well. Cook for about 5-7 minutes, stirring occasionally.
Sprinkle in the ground cumin and smoked paprika, mixing to coat the vegetables evenly. Cook for an additional minute to toast the spices.
Pour in the vegetable broth and bring the mixture to a boil. Reduce heat to low and simmer for 20-25 minutes, or until the butternut squash is tender.
Once the vegetables are cooked, blend the mixture using an immersion blender until smooth. Alternatively, carefully transfer it to a blender in batches.
Return the blended soup to the pot, then stir in the coconut milk. Heat through on low, adding salt and pepper to taste.
Serve hot, garnished with fresh cilantro if desired.