In a mixing bowl, combine flour, sugar, salt, and yeast. Add water, milk and butter; beat on low until well combined. Turn onto a well-floured surface; knead until smooth and elastic, 6-8 minutes. Place in a greased bowl, turning once on grease top. Cover and let rise in a warm place until double, about 1 hour.

Meanwhile, in a skillet, cook sausage until no longer pink, drain and cool. Cook sliced pepper using the same pan used for the sausage.

In a mixing bowl, stir mozzarella, 2 eggs beaten, basil, sausage, and peppers and set aside.

Punch dough down; divide in half. Roll one portion into a 15x10 inch rectangle on a greased baking sheet. Spoon half of the sausage mixture lengthwise down one side of rectangle to within 1 inch of edges. Fold dough over filling; pinch edges to seal. Cut four diagonal slits on top of stromboli.

Repeat step 4 with the remaining dough and filling.

Beat remaining egg; brush over loaves. Sprinkle with parmesan. Cover and let rise until doubled, about 45 minutes.

Bake at 375 degrees for 20-25 minutes or until golden brown. Slice; serve warm.