This baked spaghetti was changed slightly from the recipe that I posted for Baked Spaghetti I. I must admit that I never measure my seasonings when adding to the sauce. I always go by taste, a pinch of this and a dash of that. I guessed the amount for the seasonings and the amount could be more or less of what is actually needed. I promise that the next time I make this, I will measure the seasonings and will make the changes and additions for the ingredients. In the meantime, you can season this casserole according to your taste. My family really enjoyed this dish and there wasn't anything left for leftovers.
Bring a large pot of lightly salted water to a boil. Add spaghetti and cook for 8 to 10 minutes or until al dente. Drain and set aside.
In a large skillet over medium-high heat, saute the onions, green peppers and ground beef. Once the beef is browned and the onions and peppers are softened, add the sauce, mushrooms and the seasonings to taste. Simmer uncovered for 10 minutes. Sometimes, I will put the sauce in a crockpot and cook for several hours. The longer the sauce cooks, the better it will taste.
Preheat oven to 350 degress. Grease a 9x13 inch baking pan dish with a non-sticking spray. Place half of the cooked spaghetti into the prepared dish. Top with half of the meat mixture. Sprinkle with 1 cup of cheddar cheese and the 1/2 c of mozzarella cheese. Repeat by adding the spaghetti and the meat mixture. In a medium bowl, mix together cream of mushroom soup and water until smooth; pour over casserole. Sprinkle with the parmesan cheese and the 1 cup of cheddar cheese.
Bake in preheated oven for 30 to 35 minutes. Let stand 10 minutes before serving.