Cook spinach and lasagna noodles separately according to the package directions. Drain and set aside. For the sauce, chop onion and green pepper. Spray a cold large saucepan with nonstick spray coating; heat over medium heat. Add onion, green pepper, mushrooms, and garlic. Cook till vegetables are tender. Cut up tomatoes and crush basil. Stir undrained tomatoes, basil, tomato sauce, sugar, and º teaspoon pepper into the vegetables. Bring to boiling; reduce heat. Simmer, uncovered, 5 minutes or till slightly thickened.
Meanwhile, for filling, in a bowl stir together spinach, cottage cheese, Parmesan cheese, egg, and nutmeg.
Spread a scant Ω cup spinach mixture on each noodle. Roll up each noodle, jelly-roll style, beginning at a short end. Spoon 1 cup of sauce mixture into a 12x7Ωx2-inch baking dish. Place rolls, seam side down, in dish. Spoon on remaining sauce. Cover with plastic wrap; chill 2 to 24 hours.
Before serving, remove plastic wrap. Cover with foil; bake in a 375∞ oven for 40 to 45 minutes or till bubbly.
