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Step 1
Cook manicotti according to package directions, except cook for 2 minutes less than the package directs; drain. Place manicotti in a single layer on a sheet of greased foil.
Step 2
Meanwhile, preheat oven to 350°F. In a large bowl combine 1 cup of the mozzarella cheese, 1/2 cup of the Parmesan cheese, the onion, sweet pepper, egg, and pesto. Add ground meat; mix well. Divide mixture into 12 portions. Shape each portion into a 5-inch log. Push a log into each manicotti; arrange filled manicotti in an ungreased 3-quart rectangular baking dish. Pour Marinara Sauce over filled manicotti.
Step 3
Bake, covered, for 45 minutes. Sprinkle with the remaining 1 cup mozzarella cheese and the remaining 1/2 cup Parmesan cheese. Bake, uncovered, about 10 minutes more or until cheeses are melted. If desired, garnish with fresh basil.