1. Bring 1 cup water to a boil. Place sun-dried tomatoes in a bowl and add water. Let stand 10 minutes.
2. Meanwhile, crumble sausage into a large nonstick skillet. Cook over medium to medium-high heat for 6 minutes. Add peppers and cook, stirring occasionally, 4 minutes. Remove from heat. Drain sun-dried tomatoes and chop. Stir into sausage mixture in skillet.
3. Place bread cubes in a very large bowl. In a medium bowl, whisk eggs, milk and chopped basil. Stir sausage mixture into bread along with 1 cup of the cheese. Pour egg mixture over bread mixture and stir to moisten all ingredients. Coat a 13 x 9 x 2-inch baking dish with nonstick cooking spray. Pour bread mixture into prepared dish. Cover with plastic wrap and refrigerate overnight.
4. Heat oven to 350 degrees F. Uncover dish and sprinkle with remaining 1 cup cheese. Cover dish with foil. Bake, covered, at 350 degrees F for 45 minutes. Uncover and bake 15 minutes. Cool slightly before serving.