Bring broth to a boil in a large skillet. Reduce heat to low; add squash and next 5 ingredients. Cook, covered, 10 to 12 minutes or until squash is tender and liquid evaporates. Stir in salt, pepper, and basil.
*2 pounds yellow squash may be substituted for either pattypan or Peter Pan squash. Reduce the cooking time by 2 minutes.