Heat oil in large skillet over medium heat until hot. Add onion and 3 cloves garlic; cook and stir 2 to 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 small bowl, mixing until smooth. Stir into pepper mixture; bring to a boil. Reduce heat to medium-low; simmer 10 to 12 minutes or until slightly thickened, stirring occasionally. Keep warm.
Meanwhile cut beef steak into 1 1/4 x 1 1/4 x 1-inch pieces. Combine pepper, salt, paprika and 1 clove garlic in large bowl. Add beef; toss to coat. Thread beef pieces evenly onto six 12-inch metal skewers, leaving small space between pieces.
Place kabobs on grid over medium, ash-covered coals. Grill, covered, 5 to 7 minutes (over medium heat on preheated gas grill, 7 to 9 minutes) for medium rare (145F) to medium (160F) doneness, turning occasionally.
Cook's Tip: To broil, place kabobs on rack in broiler pan so surface of beef is 3 to 4 inches from heat. Broil about 9 to 11 minutes for medium rare (145F) to medium (160F) doneness, turning once.