Prep the peppers: Rinse the banana peppers.
Slice a slit lengthwise down one side and gently remove seeds and membranes. Keep the stems on for a tidy look and easier handling. Pat them dry.
Preheat the oven: Set to 375°F (190°C).
Lightly oil a baking dish that will snugly fit the peppers in a single layer.
Sauté aromatics: Warm 1 tablespoon olive oil in a skillet over medium heat. Add diced onion and a pinch of salt. Cook 3–4 minutes until softened, then add garlic and cook 30 seconds until fragrant.
Brown the meat: Add ground meat to the skillet.
Season with salt, pepper, and Italian seasoning. Cook, breaking it up, until browned and no longer pink. Drain excess fat if needed.
Build the filling: In a large bowl, combine the cooked meat mixture, cooked rice, tomato sauce (about 3/4 cup), chopped parsley, red pepper flakes if using, Parmesan, and the egg.
Mix until evenly combined. Taste and adjust seasoning. The mixture should be moist but not soupy.
Stuff the peppers: Spoon the filling into each pepper, gently pressing it in so it fills the cavity from end to end.
Don’t overpack to the point of tearing. Arrange the peppers in the baking dish.
Add sauce and oil: Drizzle the remaining 1/4 cup tomato sauce over the peppers and brush or drizzle with the remaining 1 tablespoon olive oil. This helps keep them tender and flavorful as they bake.
Bake covered, then uncovered: Cover the dish with foil and bake for 25 minutes.
Remove the foil, top with shredded cheese, and bake another 10–15 minutes until the peppers are tender and the cheese is melted and lightly golden.
Rest and garnish: Let the peppers rest 5 minutes before serving. Sprinkle with extra herbs or Parmesan if you like.
Serve: These are great with a simple salad, crusty bread, or roasted potatoes. Spoon any pan juices over the top for extra flavor.