1. Adjust oven rack to upper middle position and hear oven to 475. Boil 4 quarts water and add gnocchi and 1tbl salt. Stir often and cook until tended and floating. Drain.
2. Meanwhile, combine onion and oil in 12 inch oven safe skillet and cook until onion is soft, 3 min. Stir in garlic and pepper flakes and cook until fragrant, 30 seconds. Stir in tomatoes and water and cook 5 min. Season with salt and pepper.
3. Stir in gnocchi and cook till thick 5 to 7 min. Stir in basil and sprinkle with cheese. Bake 8 minutes until cheese browned.
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