1. Saute onion in oil in large nonaluminum skillet until softened, 5 minutes. Add half the garlic; saute 30 seconds. Stir in wine, tomatoes, tomato paste, basil, oregano, fennel, rosemary, 1/4 teaspoon salt and 1/4 teaspoon pepper. Bring to boiling, breaking up tomatoes with wooden spoon. Lower heat; simmer uncovered, stirring, until reduced to 1-1/2 cups, 20 to 30 minutes. (Recipe may be prepared several hours ahead up to this point; refrigerate.)
2. Place flour in heavy medium-size saucepan. Gradually whisk in milk until smooth. Add remaining garlic, the nutmeg, remaining salt and pepper. Bring to boiling over medium heat, whisking constantly. Reduce heat; simmer, stirring, 2 minutes. Remove from heat. Stir in 6 tablespoons Parmesan.
3. Cook lasagna noodles in large pot of lightly salted water, stirring occasionally, until tender but still firm, about 8 minutes. Drain. (You can hold noodles in bowl of cold water for up to 10 minutes.) Remove noodles to paper toweling to drain; pat dry.
4. Spread 1/4 cup tomato sauce in 8 x 8 x 2-inch square baking pan. Top with 2 noodles; trim to fit. Spoon 1/4 cup each tomato sauce and Parmesan sauce over top. Sprinkle with half the red pepper. Spread with 1/4 cup each tomato and Parmesan sauces. Repeat layers, starting with noodles, using remaining peppers. Top with remaining 2 noodles, remaining tomato and Parmesan sauces.
5. Bake in 400 degree F oven 30 minutes or until bubbly and browned on top. Let stand 15 minutes before cutting into 4 servings. Makes 4 servings.