Baked Spaghetti from Peggy

1 cup chopped onion
1 cup chopped green pepper
1Tbls. butter
1 can (28 ozs.) cubbed tomatoes
1 (4 oz.) can mushroom pieces-drained
1 can (2 1/4 oz.) sliced olives-drained
2 teas. dried oregano
1 pound ground beef, browned, drained
12 ozs. spaghetti, cooked, drained
2 cups shredded cheddar cheese
1 can condensed crm. musroom soup-undiluted
1/4 cup water
1/4 cup grated Parmesan cheese

Saute onion and pepper in butter until tender. Add tomatoes, mushrooms, olives, and oregano. Add ground beef, simmer 10 minutes. Place half of spaghetti in greased 9X13 baking dish. top with sauce/meat mixture. Sprinkle 1 cup cheddar cheese, thenrepeat layers. Mix soup and water and pour over top. Sprinkle with parmesan cheese. Bake @350* for 30-35 minutes, or until heated through. 12 servings