Beef and Shells with Cheese

1 pound ground round beef
1 small white onion chopped
1 small can chopped green chilies
1 cup grated reduced fat cheddar cheese, divided
12 oz. Jar picante sauce (mild or medium)
1 small can tomato sauce
1 small can French fried onion rings, divided
24 large pasta shells (stuffable kind)

Cook pasta shells.Preheat oven to 350°F.
In a bowl, combine tomato sauce, picante sauce and one cup of water.
Brown meat with onions, salt and pepper. Add can of green chilies, 1/2 cup of cheese, half a can of onion rings, and ½ cup of prepared sauce.
Stuff shell with meat mixture. Pour remaining sauce over shells. Bake uncovered for 30 minutes.
Sprinkle remaining onion rings and cheese over the top. Bake for 5 minutes, or until cheese is bubbly.