Preheat oven to 350F.
Break spaghetti into two-inch pieces. Cook and drain. Place in casserole dish.
Melt oleo. Stir melted oleo, most of the cheese (save a little to sprinkle over the casserole), salt, pepper, and egg into spaghetti.
Fry the beef, onion, and peppers. Drain and add spaghetti sauce, sugar, oregano, and garlic.
Evenly spread cottage cheese over spaghetti mixture. Evenly spread beef mixture over cottage cheese. Place casserole dish in oven, and bake for 30 minutes. Sprinkle mozzarella over casserole, and bake for 10 more minutes. Let stand 15 minutes, and serve.