COOK pasta as directed on package, omitting salt. Meanwhile, heat oil in large nonstick skillet on medium heat. Add chicken; cook and stir 7 min. or until done.
STIR in milk and cream cheese spread; cook 3 min. or until cream cheese is completely melted and sauce is well blended. Add peppers, Parmesan and pesto; stir. Cook 3 min. or until heated through, stirring occasionally.
DRAIN pasta. Add to cream cheese sauce; toss to coat.
KRAFT kitchens tips:
Substitute 1-1/2 cups roasted red pepper strips for the fresh red pepper strips.
For more intense flavor, stir in 1 Tbsp. lemon zest or 1/2 cup pitted dry-cured olives, along with the peppers, Parmesan and pesto.
Pesto is an uncooked sauce made with fresh basil, garlic, pignoli (pine nuts), Parmesan or Pecorino cheese and olive oil. This classic, fresh-tasting sauce originated in Italy and is a favorite on pasta and chicken dishes. Look for prepared pesto in either the refrigerated aisle of your supermarket, with the sauces and dressings in the produce aisle or with the jarred pasta sauces in the grocery aisle.