Cook pasta according to directions on package.

Heat oven to 375. Cook onion and garlic in olive oil over medium-high heat. Add sausage, and cook, breaking up until browned. Stir in bell peppers, mushrooms, salt, and italian seasoning, and cook, stirring frequently, until vegetables are soft, about 5 minutes. Stir in tomatoes, 3/4 cup water and basil and bring to a boil. Reduce heat to medium low and simmer until the sauce thickens slightly about 15 minutes.

Spray 2 quart casserole. Add past to the skillet and toss to combine the sauce. Spoon half into the casserole. Sprinkle with half the cheese. Spoon remaining mixture on top, and top with remaining cheese. Cover loosely with foil sprayed with cooking spray (don't let the foil touch the cheese). Bake until bubbly about 20-25 minutes. Let stand 5 minutes before serving.