Hearty Homemade Spaghetti Sauce

In a large skillet, cook the beef, peppers, celery, onion and garlic over medium heat until meat is no longer pink and vegetables are tender; drain. Add the mushrooms; cook for 2 minutes. , Stir in the tomatoes, tomato paste, water, bay leaf, sugar, salt, basil, oregano and pepper. Bring to a boil. Reduce heat; cover and simmer for 45 minutes, stirring often. Discard bay leaf. Serve sauce over spaghetti. Sprinkle with Parmesan cheese.