Halve peppers and remove stems, seeds, and membranes. Immerse peppers in boiling water for 4-5 minutes, until desired tenderness. Remove peppers from water and sprinkle insides with salt. Place cut side down on paper towels to drain.
Cook ground beef and onion in skillet until meat is browned; drain. (OR Saute onion in skillet, then add pre-cooked ground beef.)
Stir in tomatoes, rice, water, salt, pepper, and basil. Bring to a boil; reduce heat. Cover and simmer mixture for 15-18 minutes, or until rice is tender. Add cheese to mixture; stir until melted.
Fill peppers with meat mixture. Place in baking dish with any remaining meat mixture. Bake at 375 for 15 minutes or until heated through.