Heat oven to 350°F. Combine meatball ingredients in large bowl, mixing lightly but thoroughly. Shape into twelve 2-inch meatballs. Place on rack in broiler pan. Bake in 350°F oven 25 to 30 minutes.
Heat 2 tablespoons water in large nonstick skillet over medium heat until hot. Add onion and bell pepper; cook and stir 4 minutes or until vegetables are tender. Add spaghetti sauce, basil and meatballs; heat through, stirring occasionally. Serve in rolls; sprinkle with cheese.