In large saucepan over medium-high heat, heat oil. Add onions, peppers, garlic and Italian seasoning; salt and pepper to taste. Sauté until onions are softened (about 3-5 minutes).
Stir in vegetables; continue sautéing until heated through (about 5 minutes). Stir in 1 cup cheese and half & half; continue cooking until cheese is melted, stirring constantly.
Transfer to a greased 2-quart baking dish. Top with remaining cheese; sprinkle with bread crumbs. Generously spray bread crumbs with cooking spray.
Bake in a preheated 375°F oven 20 minutes or until bubbly and golden brown.
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