Sausage with Jalapeno Potatoes

Ingredients

• 3 pounds potatoes (about 6 medium), peeled and cut into 1-inch cubes
• 3 jalapeno peppers, sliced and seeded
• 1/4 cup butter, cubed
• 2 tablespoons water
• 3 garlic cloves, minced
• 3/4 teaspoon salt
• 1/4 teaspoon pepper
• 2 medium sweet red peppers, halved and cut into 1-inch strips
• 2 medium sweet yellow or orange peppers, halved and cut into 1-inch strips
• 1 large onion, halved and thinly sliced
• 1 teaspoon olive oil
• 5 Italian sausage links (4 ounces each)
• Chopped fresh basil, optional