Melt 3 tablespoons of butter over medium–low heat in a 4 quart pot. Add red pepper and onions; sauté until limp but not browned.
Stir in butternut squash, chicken stock, salt and rice.
Melt 2 tablespoons of butter in small sauté pan over medium heat. Add sage leave and cook stirring constantly until butter turns a deep amber color (do not burn). Remove sage leaves and set them aside.
Add browned sage butter to vegetables and stock; bring to a boil. Reduce heat; cover and simmer 20 to 25 minutes until the rice is cooked.
Add sherry and puree mixture until smooth. Add salt and pepper to taste.
Finely chop the fried sage (leaving a few whole leaves for garnish if desired.) Stir chopped sage into pureed soup or sprinkle on top of individual portions.
Serve soup topped with freshly grated Parmesan