Make an x cut on the bottom of each tomato and drop them in a pot of boiling water for a few minutes. Remove them with a spider and plunge in a bowl of ice water for two minutes. Fish them out and peel with a knife or your fingers. Skin should come right off.
Chop the peeled tomatoes into small dice, or you can process them in a food processor until smooth paste forms.
Heat oil in a large cast iron skillet, add onion and sauté until soft. Add garlic and continue to fry for 2 minutes making sure not to burn garlic to prevent bitter taste in the final dish.
Add diced red bell pepper and cook stirring for a few minutes.
Add blended tomatoes, tomato paste, chili powder, cumin powder, paprika, and sugar and stir to mix. Continue to cook on medium high heat until the contents are well cooked and oil starts to separate on the sides.
Add ¼ cup water to loosen the sauce and bring it to a boil.
Remove the skillet from heat, and make holes in the sauce by moving the sauce with a wooden spoon and dropping an egg in each hole created. Do the same with rest of the eggs and return the skillet to medium low heat.
Cover and let it cook for 5 to 7 minutes, and lower heat to simmer and continue to cook until eggs are cooked but the yokes are not too hard.