Step 1: Heat a large skillet over medium heat and cook the pancetta until crispy, about 8 minutes. Remove to a paper-towel-lined plate.
Step 2: Add the olive oil to the pancetta fat in the pan and arrange the Brussels sprouts in one layer. Cook over medium heat until browned, about 5 to 7 minutes, tossing occasionally, then add the garlic and 1/2 cup of water. Cover the pan and cook the sprouts over medium-low heat until tender, about 15-20 minutes, adding more water if the pan dries out. Remove the sprouts with a slotted spoon to a medium size bowl.
Step 3: Drizzle the balsamic vinegar directly in the pan and turn heat to medium-high. Reduce the balsamic to syrup, and season to taste with salt and pepper. Add the butter, sprouts and pancetta, and toss until coasted. Season to taste with salt and pepper again, and serve.
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