Winter Carnival Casserole

2 T. oil
1/2 C onion, chopped
1/2 C green pepper, chopped
1 lb. ground beef
1 lb 12 oz can whole tomatoes, puree in blender (save 1/4 c liquid)
1/2 C karo
1/4 t. chili powder
1/4 t. pepper
1 bay leaf
2 T corn starch
2 C macaroni (uncooked)
Velveeta

Heat oil in skillet.  Add onion and gr pepper.  Cook until tender, add ground beef, brown stirring often.  Add tomatoes, Karo, chili powder, pepper and bay leaf.  Cover and simmer 15 minutes.
Take reserved tomato sauce and add corn starch,  add to hamburger mixture.  Bring to a boil.
Cook macaroni.
Pour macaroni and hamburger mixture into a casserole dish.  Lay slices of Velveeta cheese on top.
Bake at 350 for 30 minutes.