Preheat oven to 425°F.
Heat 2 tablespoons EVOO, 2 turns of the pan, in a saucepot. Add sliced garlic and stir 1-2 minutes. Add onion, bay and tomatoes; break them up with a spoon and season with salt, pepper, and sugar. Simmer 25-30 minutes at a low bubble to thicken and break down tomatoes. Remove onion and bay, stir in a couple of leaves of sweet basil. If sauce thickens too quickly, add a splash of water.
Drizzle peppers with EVOO and season with salt and pepper. Roast 20 minutes, remove and cool to handle.
Cover bread with milk in a small bowl to soak.