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1. In a medium saucepan bring the 2 cups water to boiling. Combine the cornmeal, 3/4 cup water, and 1/4 teaspoon salt. Slowly add cornmeal mixture to the boiling water, stirring constantly. Cook and stir until mixture returns to boiling. Reduce heat to low. Cook, uncovered, for 10 to 15 minutes or until thick, stirring frequently. Stir in the cheese.
2. Spread the hot polenta in an ungreased 2-quart square baking dish. Cool polenta slightly. Cover and chill for 30 minutes or until firm. Bake, uncovered, in a 350 degree F oven about 20 minutes or until hot.
3. Meanwhile, for the sauce, in a medium saucepan cook mushrooms; onion; and garlic in hot cooking oil or margarine until tender. Cook and stir on medium high heat for 10 minutes. Place tomatoes in a blender container. Cover and blend until smooth. Stir the blended tomatoes and sugar into the mushroom mixture. Simmer, uncovered, for 15 to 20 minutes more or to desired consistency. Stir in fresh basil or 1/8 teaspoon salt, and dash pepper. Heat through.
4. Cut polenta into 6 rectangles; cut each rectangle in half diagonally to form 12 triangles. Serve immediately with Tomato-Mushroom Sauce. Makes 12 servings.