Preheat oven to 350°F/180°C.
Cut off top portion of peppers and remove seeds and white membrane inside, creating a “cup” with each pepper.
In a large sauce pan, bring water to a boil; add peppers and boil for 5 minutes. Remove peppers from water and drain any remaining water from them. Set aside.
Combine ground beef, bread cubes, onion and 1/2 c. chili sauce in a bowl. Add salt and pepper to taste.
Stuff peppers with the ground beef mixture and place in a small, greased casserole dish so peppers are touching, but not overcrowded.
Cover dish with aluminum foil and bake for 50 minutes.
Remove foil, add remaining chili sauce and cheese and bake for 5 minutes uncovered.