BAKED SPAGHETTI

1 cup chopped onion
1 cup chopped green pepper
1 tablespoon butter or margarine
1 can (28 ounces) tomatoes with liquid, cut up
1 can (4 ounces) mushroom stems and pieces, drained
1 can (2 1/4 ounces) sliced ripe olives, drained
2 teaspoons dried oregano
1 pound ground beef, browned and drained, optional
12 ounces spaghetti, cooked and drained
2 cups or more(8 ounces) shredded extra sharp cheddar cheese
1 can (10 3/4 ounces) condensed cream of mushroom soup, undiluted
1/4 cup water
1/4 cup grated Parmesan cheese or more
Salt and pepper to taste

In a large skillet, saute onion and green pepper in butter until tender. Add tomatoes, mushrooms, olives and oregano. Add ground beef if desired. Simmer, uncovered, for 10 minutes. Place half of the spaghetti in a greased 13 x 9-inch baking dish. Top with half of the vegetable mixture. Sprinkle with 1 cup of cheddar cheese. Repeat layers. Mix the soup and water until smooth; pour over casserole. Sprinkle with Parmesan cheese. Bake, uncovered, at 350 degrees for 30-35 minutes or until heated through. Yield: 12 servings.