Brown beef with garlic in butter. Add tomato sauce, salt, pepper, basil, Italian herbs, and sugar. Simmer 15 minutes, stirring frequently. In bowl blend cottage cheese, cream cheese, sour cream, onion, and green pepper.
Grease 9x13 inch casserole and set aside. Cook noodles as directed on package, cutting down on cooking time by 2 minutes. Drain noodles and stir in 2 tablespoons of butter and sprinkle with salt and pepper to taste. Place 1/2 of noodles in bottom of casserole making an even layer, spread cheese over this and follow with rest of noodles. cover with ground meet and top with the grated cheese. Bake 30 minutes at 350° or until cheese on top is melted.