Preheat the oven to 350 degrees and spray an 8 inch square or 9 inch deep dish pie plate with non stick cooking spray.
In a small skillet, melt the butter over medium heat. Add the shallots and saute until softened and golden, about five minutes. Stir in the garlic and saute another minute, or until fragrant.
Add the shallots, garlic, cream cheese, sour cream, 3/4 cup cheddar cheese, and 1/4 cup Parmesan cheese to the bowl of an electric mixer. Beat until well combined. Fold in the peppers and crab meat, then stir in the hot sauce, lemon juice, and Old Bay seasoning. Taste and adjust seasonings to your liking.
Spread the dip evenly over the baking dish, and sprinkle with the remaining cheddar and Parmesan cheese. Bake in the preheated oven for 20-25 minutes or until dip is bubbly and cheese is melted. Remove from oven, sprinkle with green onions, and serve with your choice of crackers or veggies.