Preheat oven to 375 degrees. Spray roasting pan with cooking spray.
Wash peppers; cut off tops and remove seeds. Cut into quarter size pieces. Place in bottom of pan.
In a large bowl, mix together ground beef, cooked white rice, onion, egg, garlic, black pepper, salt and Italian seasoning. Mix well. Form mixture into 10 to 12 meatballs and place on top of green peppers.
In the same bowl, whisk together soup, 2 soup cans water, black pepper, salt and Italian seasoning. Pour over meatballs. Cover and place in preheated oven. Bake for 1 hour to 1 hour 15 minutes, or until cooked thoroughly. Serve with mashed potatoes, if desired. Makes 5-6 servings. Enjoy!