Pre-heat oven to 400 degrees.
Chop the onion and garlic.
Saute onion and garlic with olive oil for about 2 minutes. Add salt & pepper.
Add tomatoes. Simmer for 20 minutes. Add salt & pepper.
When about five minute remain, add half of the fresh basil to the sauce and continue to simmer.
During those last few minutes, cook the gnocchi and drain them. They only take about 3 minutes to cook.
In a small baking dish ( I used a 7 inch round baking pan), add a layer of sauce and half the pasta.
Top with some more sauce, half the Parmesan cheese and half the mozzarella.
Repeat for a second layer.
Pop in the oven until the cheese is melted and bubbly-about 5-10 minutes. Top with remaining fresh basil.
Serve!