  In this Letter we experimentally demonstrate the generation of squeezed,
bright twin beams which arise due to competing gain and absorption, in a medium
that is overall transparent. To accomplish this, we make use of a
non-degenerate four-wave mixing process in warm potassium vapor, such that one
of the twin beams experiences strong on-resonant absorption. At room
temperature and above, due to Doppler broadening and smaller frequency
detunings compared to other schemes, the ground state hyperfine splittings used
in the present double-$\Lambda$ setup are completely overlapped. We show that
despite the resulting significant asymmetric absorption of the twin beams,
quantum correlations may still be generated. Our results also demonstrate that
the simplified model of gain, followed by loss, is insufficient to describe the
amount of quantum correlation resulting from the process.
