Cook onion and garlic in oil till tender; stir in soup.

Cook manicotti in boiling salted water till tender, 15 to 20 minutes.

Drain.

Cut shells in half crosswise, if necessary, to fit two individual baking dishes or a 6 1/2 x 6 1/2 x 2 inch baking dish.

Combine egg, cottage cheese, half the American cheese, and chili peppers.

Spoon cheese mixture into manicotti.

Pour half the soup mixture into the two individual baking dishes or the 6 1/2 x 6 1/2 x 2 inch baking dish.

Top with stuffed manicotti.

Pour remaining soup mixture over, being sure manicotti are coated.

Bake, covered, at 350° for 35 to 40 minutes.

Uncover; sprinkle with remaining cheese.

Bake 2 or 3 minutes more.

Let stand 5 minutes.