Place 1 tablespoon butter, 1 tablespoon oil, onion, red bell pepper, garlic, cilantro, salt, and pepper in a large sauté pan over medium-low heat and cook until the vegetables are soft, approximately 10 minutes. Set aside.

In a medium pot place the fish, 2 cups water, salt, pepper and bay leaf. Cook about 8-10 minutes.

Place the fish in a large bowl and let it cool. Break the fish into small pieces and toss with the bread crumbs, milk and 2 eggs. Add the cooked mixture and mix well. Cover and chill in the refrigerator for 15 minutes. Shape into small balls.

Place the flour in a plate and the beaten egg in shallow dish. First coat the fish balls with egg and then with the flour.

Heat the oil for frying over medium heat in a large sauté pan. Add the fish balls and fry for 4 to 5 minutes on each side until browned. Drain on paper towels. Serve hot with lime and your favorite sauce on the side.