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The wings are so tiny and crumpled when a butterfly emerges, it's hard to believe they will become large enough for it to fly. But it only takes a few minutes and they are full-sized!
I have a bit of trouble with basil, too. It likes sun, but here in Southern California the summer sun is too hot and direct for it to be in an unsheltered area; it either dries up or goes to seed immediately. I found a location where mine gets sun in the morning, but not in the afternoon, and it is doing okay, but not great. Your plant is much bigger than mine.
We took some American Beauty caterpillars off a hanging planter and raised them in a big, ventilated jar in the house. We just made sure that, while they were eating, we kept enough of the leaves they liked in the jar. The bare stems that remained are what they attached themselves to.
Soon they started hanging and forming the chrysalis, and then we just watched for them to emerge and set them free. It was fun to watch.