Grilled Spaghetti and Meatballs

"Grilled Spaghetti and Meatballs? Yep. Well, the meatballs and veggies are grilled, then served atop the creamy tomato sauced spaghetti...."

INGREDIENTS
3/4 cup (3/4 of 8-oz. tub) PHILADELPHIA Cream Cheese Spread
1/4 cup milk
1 tsp. dried Italian seasoning
1 tsp. garlic powder, divided
1 lb. lean ground beef
1/3 cup panko bread crumbs
1/4 cup KRAFT Grated Parmesan Cheese
2 each green and red peppers, cut into 1-inch pieces
1/2 lb. fresh mushrooms, cut in half
2 qt. (8 cups) water
3/4 lb. spaghetti, uncooked
2 cups OLIVO by CLASSICO Traditional Pasta Sauce
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