Place 4-quart saucepan on the stove over medium-high heat, add butter and vermicelli and stir until lightly browned and butter stops foaming, about 3 minutes.
Add water or chicken stock and salt. Bring to a boil.
Add bulgur, bring back to a boil, then lower heat to medium-low and cook until all the liquid has been absorbed, about 25 minutes. Do not stir. Sprinkle with pepper. Remove from heat, cover to keep warm and set aside.
Meanwhile, while bulgur is cooking, heat a cast-iron or other heavy-bottomed skillet over high heat.
Add peppers, turning occasionally until skin is blackened and blistered (you can also do this carefully over the burner of a gas stove).
Place peppers in a bowl and cover with a plate to trap heat and steam off the skins. Once peppers are cool enough to touch, gently remove blacked skin and set aside.
While skillet is still hot, sear the ham steaks, turning once to brown on both sides.
Slice ham steaks into quarters and serve immediately with pilaf and peppers.
