In 12-inch skillet, cook sausage over medium-high heat 5 to 7 minutes, stirring occasionally, until no longer pink; drain.
Stir in 2 cups water and all remaining ingredients except cheese and basil. Heat to boiling, stirring occasionally.
Reduce heat to medium; simmer uncovered about 10 minutes, stirring occasionally, until pasta is tender. Remove from heat; sprinkle with cheese. Cover, let stand 2 to 3 minutes or until cheese is melted. Sprinkle with basil.