Step 1: Heat 1 tablespoon butter in a 10-inch nonstick skillet over medium-high heat. Add potatoes and cook until golden brown, shaking the pan and tossing the potatoes from time to time, 3 to 5 minutes. Stir in chiles and transfer to a plate.
Step 2: Combine eggs and hot sauce, salt and pepper with a fork in a medium bowl. Stir in cheese, scallions, cilantro (or parsley) and the potato mixture.
Step 3: Set a rack about 4 inches from the heat source; preheat the broiler.
Step 4: Brush the pan with the remaining butter; heat over medium heat. Pour in the egg mixture and tilt to distribute evenly. Reduce the heat to medium-low and cook until the bottom is light golden, lifting the edges to allow uncooked egg to flow underneath, 3 to 4 minutes.
Step 5: Place the pan under the broiler and cook until the top is set, 1 1/2 to 2 1/2 minutes. Slide the omelet onto a platter and cut into wedges.
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