Bring the milk, water and salt to a gentle boil in a large heavy pot. Add the fettuccine noodles, partially cover and cook, stirring often until pasta is tender and most of the liquid has been absorbed. For fresh pasta, this should take about 5 - 7 minutes. There should be about one cup of liquid left.
Stir in the grated Parmesan and heat through. Thin with more milk if necessary. Garnish with the crumbled bacon, chopped basil and freshly ground pepper.
Variation - Macaroni and Cheese
For two cups of dry macaroni, use two cups of each milk and water, ½ tsp salt. Stir in one cup of Cheddar cheese at the end of the cooking time.