Heat oil in large skillet over medium heat until hot. Add onion and 3 cloves garlic; cook and stir 2-3 minutes or until onion is tender. Add red peppers, wine, tomato paste and thyme, stirring until tomato paste is blended. Combine broth and cornstarch in a small bowl, mixing until smooth. Stir into pepper mixture; bring to boil. Reduce heat to medium-low; simmer 10-12 minutes or until slightly thickened, stirring occasionally. (If you wish, you can puree pepper sauce in blender for a few seconds and return to pan). Keep warm.
Meanwhile cut beef steak into 1 1/4 x 1 1/4 x 1-inch pieces. Combine pepper, salt, paprika and 2 cloves minced garlic in large bowl. Add beef; toss to coat. Thread beef pieces evenly onto six 12-inch skewers, leaving small space between pieces.
Spread some vegetable oil on paper towel and wipe down grill grate. Heat grill to medium. Place kabobs on grill over medium heat, cover and grill 7-9 minutes for medium rare to medium, turning once. Serve with dipping sauce.