I didn't spray anything on it. It is in a south-facing window indoors. I didn't say it was a fungus I was asking... I cut off the infected leaves because it seems they start to die if I don't. The get dry and curl up and then eventually turn brown. It also spreads from one leaf to now almost all since I haven't done anything this time. After I cut off the infected leaves the plant seemed to recover nicely but now the rings are back.

Your question caused me to be curious myself, since I haven't ever done propagation using basil cuttings. Found an interesting web site with a video showing how to do basal cuttings. Looks simple enough, which usually means trouble for me :~). A link to the site follows. Here is a link that might be useful: How to take basal cuttings

Lilasmom, I'm in La Crescenta and having a terrible tomato year! Curling leaves, dead leaves at bottom of plants, stunted and/or dying plants, small or no fruit. Then I saw a thriving patch of tomatoes in Pasadena today and was wild with envy. Seems to be a spotty year, if that makes you feel any better! Some years are just bad, I've found.

No expert here, but was wondering where you got the soil recipe you are using? At first glance the peat/topsoil mix might be water retentive and possibly cause the yellowing of the leaves, and stunting growth. A good container mix, 5-1-1, pine bark, peat, perlite, is recommended over on the Growing in Containers forum. Without a good foundation to work from, it's hard to make any other suggestions, like feeding. My first impression without knowing about your mix, was that they are not getting enough sun, the Early Girl is too leggy. If you can get your hands on some pine bark mulch and a little garden lime, you can make an awesome, well draining, container growing mix. You already have the peat and perlite.