Baked Spaghetti

2 cups tomato sauce

1 cup water

1/2 cup diced onion

1/2 cup diced green bell pepper

2 cloves garlic , chopped

1/4 cup chopped fresh parsley leaves

1 1/2 teaspoons Italian seasoning

1 1/2 teaspoons House Seasoning , recipe follows

1 1/2 teaspoons seasoning salt

1 1/2 teaspoons sugar

2 small bay leaves

1 1/2 pounds ground beef

8 ounces uncooked angel hair pasta

1 cup grated cheddar

1 cup grated Monterey Jack House Seasoning:

1 cup salt

1/4 cup black pepper

1/4 cup garlic powder