Prepare the Pesto: Combine cilantro and walnuts in a food processor and pulse until coarsely chopped. Slowly drizzle in the olive oil until the mixture achieves a smooth, fluid consistency. Stir in the red wine vinegar, salt, and crushed red pepper flakes, pulse once more to combine, and set aside.
Blister the Pepper: Heat a cast iron skillet over medium heat. Place the mini pepper in the dry skillet and blister until charred on all sides. Remove the pepper and set it aside.
Cook the Panela: Add 1 Tbsp olive oil to the same skillet, then place the sliced panela cheese in the pan. Cook on both sides until golden brown and crisp.
Assemble and Serve: Transfer the cooked panela to a serving plate. Drizzle with honey. Slice the blistered pepper (keeping the skin on) and arrange the pieces over the cheese. Finish the dish with a generous drizzle of the walnut cilantro pesto.