In large skillet, melt 1/4-cup butter. Add chops; cook until browned on both sides; remove chops and set aside. Reserve drippings. Slice 4 rings from green peppers and set aside. Dice remaining green pepper. Add remaining 3/4-cup butter to drippings in skillet; melt butter. Add diced pepper, onion and saut�, stirring constantly, until crisp-tender. Stir in carrots; saut� 1 minute. Add kraut, sugar, salt, pepper and thyme; toss until combined.

With sharp knife, cut each pork chop horizontally at fat side to bone to form a pocket. Stuff each pork chop with vegetable mixture. Bake until internal temperature reaches160 degrees.