In a large skillet, cook ground beef, sausage, and onion until browned; drain excess fat. Add garlic, cook for 1 minute.
Add crushed tomatoes, tomato paste, tomato sauce, and water. Stir in sugar, basil, Italian seasoning, salt, and pepper. Simmer for 45 minutes, stirring occasionally.
In a mixing bowl, combine ricotta cheese, egg, and parsley. Mix until smooth.
Preheat oven to 375°F (190°C). Spread 1½ cups meat sauce in the bottom of a 9x13-inch baking dish.
Place three noodles over the sauce, followed by a layer of ricotta mixture, 1 cup of mozzarella, and ¼ cup Parmesan. Repeat layers, ending with meat sauce and mozzarella.
Cover with aluminum foil and bake for 25 minutes. Remove foil and bake for an additional 25 minutes. Let stand for 15 minutes before serving.
Notes
Add fresh basil or a pinch of red pepper flakes to enhance the sauce’s flavor.