Bring water to a boil in small sauce pan, add red pepper and spinach, return to boil then reduce heat to a simmer. Allow to cook 10 minutes. Drain in a colander, use a spoon to press out extra water.
In the same sauce pan combine cream cheese and milk, stirring often until melted. Add spinach and red pepper, parmesan cheese, crushed red pepper flakes, salt, and pepper. Stir to combine and allow to heat through.
Garnish dip with the finely diced red pepper after putting in serving dish.
Recipe by Supper for a Steal at http://supperforasteal.com/spinach-and-red-pepper-dip/