Preheat the oven to 350°F (180°C) and grease a 2-quart casserole dish.

In a large skillet over medium heat, cook the lean ground beef, chopped onion, and chopped green bell pepper until the meat is no longer pink. Drain off the fat.

Stir in garlic powder, sugar (if using), cider vinegar, and diced tomatoes with juice. Simmer uncovered for 10 minutes, stirring frequently.

Taste and season with salt and pepper as needed.

Cut the cabbage into 6 wedges or coarsely chop, removing the tough core.

In a large saucepan, add water and salt, then boil the cabbage for about 10 minutes until tender. Drain thoroughly.

Arrange the drained cabbage in the prepared casserole dish.

Pour the ground beef and tomato mixture over the cabbage and bake uncovered for 20 to 25 minutes.

Sprinkle shredded mild cheddar cheese over the casserole and bake for an additional 5 minutes until the cheese melts.

Let it cool for a few minutes before serving. Enjoy!