Sausage Casserole

1 lb. hot pork sausage
2 bell peppers, chopped
1 onion, chopped
1 small can mushrooms, chopped with liquid
2 cans cream of mushroom soup
2 cans pet milk
1 can water chestnuts, chopped
2/3 cup raw rice

Brown sausage in skillet and pour off fat.  In mixing bowl, combine all other ingredients.  Add sausage, mix, pour into large casserole dish.  Bake at 325 for 30 minutes.  Stir, and cook 30 minutes more.