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Cut tops off bell peppers, making a bell pepper "bowl".
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Remove seeds and membrane, rinsing well under cold water.
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Par-boil peppers for approximately 5 minutes.
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Remove peppers from boiling water and place in a 9 x 13 baking dish.
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Brown ground beef and drain any excess fat.
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Add chopped onion to ground beef, stirring every few minutes.
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Meanwhile, make rice by boiling the cup of water and butter, adding rice and simmering until rice is cooked, as you would normally make steamed rice.
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While rice is cooking, mix tomato sauce, sugar and basil together in a seperate bowl.
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When rice is done, add to meat and onion mixture.
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Add half of the sauce and half of the cheddar cheese to meat mixture, stirring all together.
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Spoon meat mixture into each bell pepper; if you have any left over you can spoon some around the peppers as well.
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Spoon remaining sauce mixture over each bell pepper and top with remaining cheese.
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Bake at 350 for approx 20 minutes.
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NOTE: Although this sounds like a lot of steps to go through, this is one of those recipes where you can be doing more than one thing at a time.
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I usually start my water to boil for the par-boiling of the peppers at the same time I'm browing the ground beef and chopping my onion, and cleaning the bell peppers.
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I am also guilty of making more sauce than needed, and adding more cheese than necessary. I really don't think you can screw this up -- it's just a matter of personal taste, so feel free to play with the amounts.