In a skillet, cook and crumble sausage in 1 tablespoon olive oil until no longer pink; set aside.
In a large bowl, combine bread cubes and the remaining oil. Sprinkle with pepper; toss to coat.
Transfer to a greased 15 x 10 inch baking pan. Bake at 350˚F for 10 minutes or until crisp and a lightly browned, stirring once.
Remove pan to a wire rack to cool slightly.
In a very large bowl reserved sausage, Parmesan cheese, green pepper, sun-dried tomatoes, basil and garlic. Combine eggs and water; pour over bread mixture and toss to coat.
Transfer to a buttered 13 x 9 inch baking dish. Dot with butter. Bake, uncovered, at 350˚F for 35 to 40 minutes or until hot.