Three Cheese Chicken Bake

8 ounces lasagna noodles, cooked and drained
1/2 cup chopped onion
1/2 cup chopped green pepper
3 tablespoons butter or margarine
1 teaspoon basil
16 ounces cottage cheese
1 can cream of chicken soup
1 (6 ounce) can sliced mushrooms, drained
1/2 cup milk
2 cups cooked, diced chicken
2 cups shredded American cheese
1/2 cup grated Parmesan cheese

Saut