Peel eggplants, and cut each into 1/2-inch-thick slices.
Dip eggplant slices into milk, and dredge in breadcrumbs.
Fry eggplant, in batches, in hot oil in a large skillet over medium-high heat 2 minutes on each side. Remove from skillet, and cool on a wire rack.
Process Italian diced tomatoes in a blender until smooth. Stir in drained diced tomatoes and green chilies and 1 tablespoon chopped basil.
Spoon half of tomato sauce into a lightly greased 13- x 9-inch baking dish. Top with half of eggplant; sprinkle with half each of Parmesan cheese and mozzarella cheese. Repeat procedure with remaining sauce and eggplant.
Bake at 400° for 15 minutes. Sprinkle with remaining cheeses, and bake 5 more minutes. Sprinkle with remaining 1 tablespoon basil.