Million Dollar Spaghetti Casserole

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1 lb extra-lean ground beef
2 garlic cloves
1 onion
1 C. (15 mL) Italian seasoning
3 cups (750ml) milk
1 1/3 c (330 ml) hot water )
12 oz spaghetti
3 c pasta sauce (1 jar)
1 red bell pepper
1 C. 1 tbsp balsamic vinegar
1/4 c freshly grated Canadian Parmesan or grated Italian cheese blend
Fresh basilic

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