Heat oil in medium saucepan over medium heat until hot. Add onion and garlic; cook and stir 4 minutes. Stir in tomatoes, sugar, salt, nutmeg and pepper; cook and stir 5 minutes. Stir in basil and 1 tablespoon cheese. Cover; remove from heat.
Heat large nonstick skillet over medium heat until hot. Place steaks in skillet; cook tenderloin steaks 10 to 13 minutes (eye round steaks about 8 to 10 minutes), turning occasionally. Season with salt and pepper.
Spoon tomato sauce over pasta; sprinkle with 2 tablespoons cheese. Serve with steaks.