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Italian Sausage and Peppers

1 pound Italian sausage -- cut into 1 in. pieces
2 green bell pepper -- cut into pieces
1 onion -- sliced
4 cups tomato -- drained
2 cloves garlic -- chopped
2 tablespoons olive oil
1/4 cup basil -- chopped
1/2 cup onion -- chopped
1/2 teaspoon oregano

Place sausage in a pan with a small amount of water (about 1/2 cup) and cover pan. Cook for about 10 to 15 minutes. Drain liquid and remove sausage and set aside.

While sausage is cooking, make sauce: Saute 1/2 cup chopped onions and garlic. Add tomatoes, basil, oregano, salt and pepper to taste and simmer for about 15 minutes. (If using dried basil, use about one teaspoon instead of 1/4 cup of fresh.)

When sausage is removed from pan, saute one sliced onion and peppers in olive oil until tender. Add tomato sauce and return sausage to pan. Simmer uncovered for about 10 minutes.
Serve on rolls or over spaghetti.