Preheat oven to 350 degrees. Crumble sausage and cook slowly with green pepper until brown. Remove from heat; drain well. Cook noodles in boiling salted water. Drain; turn into 2-qt. casserole. Add sausage and pepper. Simmer remaining ingredients except the cheese in saucepan for 5 minutes, stirring occasionally. Remove bay leaves. Add remaining mixture to sausage. Mix well. Shake Parmesan cheese over top.