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Dice the aubergine, courgette and pepper into 3cm chunks. Heat the olive oil in a large casserole or deep frying pan over a medium heat. Fry the onion for 10 mins until soft and translucent. Add the chopped veg, turn the heat to high and fry for another 10 mins until softened.
Stir the garlic into the pan, and toss everything together, frying for 1 min more. Tip in the chopped tomatoes, plus half a can of water (200ml), the dried herbs and the chopped basil. Simmer for 20 minutes on a medium heat, stirring occasionally, until the veg is tender and the tomatoes are thick and coating the veg. Season and add the vinegar and sugar to balance the sweet and acidity of the tomatoes. Scatter with the basil leaves, and serve with rustic bread, or pasta.