Mix last three ingredients in a small bowl, reserve.

Preheat oven to 350º F

In a large bowl add broken pieces of Italian bread into water. Soak, then squeeze out water from soaked bread. Discard all water, adding bread back to bowl, pull apart.

Add eggs, onion, peppers, garlic, parsley, basil, salt and black pepper and mix well.

Add ground beef to bread mixture and mix well

In large baking dish spread out half the meatloaf mixture

Add mozzarella cheese on top, across the center of the mixture

Layer remaining mixture on top

Spread sauce mixture on top of meatloaf

Bake to 165°F or about 45-55 minutes

Let sit for a few minutes before slicing