In a medium saucepan saute green pepper and onions in butter/margarine over medium heat.
Stir in undiluted soup, milk, shredded cheese and basil.
Place half of the noodles in 13 x 9 x 2 inch baking dish. Layer with half of the cream sauce, half cottage cheese, half diced chicken, and half parmesan cheese. Repeat layers.
Bake at 350 degrees F for 45 minutes.