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Preheat oven to 350 degrees F.
Make the meat sauce. Add beef and sausage to a large skillet over medium-high heat, breaking it apart with a wooden spoon. Add the onion and garlic. Cook until meat is browned, about 6-8 minutes. Drain the fat from the meat. Return the meat to the skillet.
Add the tomato sauce, crushed tomatoes, tomato paste, water, sugar, 2 teaspoons salt, 2 teaspoons Italian seasoning, 1 teaspoon basil, and the black pepper. Stir until well combined. Cover and reduce the heat to low. Simmer the sauce for 30 minutes. Stir in 2 tablespoons of the minced parsley.
As the sauce cooks, make the ricotta mixture. In a large bowl, add 1 cup mozzarella, the ricotta, 1/4 cup parmesan, 2 tablespoons of the parsley, the egg, 1 teaspoon salt, 1 teaspoon Italian seasoning, and 1/2 teaspoon basil. Stir until well incorporated.
Cook the pasta al dente, according to it’s package directions.
Assemble the lasagna. In a 13x9 inch baking dish, add a very thin layer of meat sauce (about 1/4 cup). Layer 3 lasagna noodles, 1/3 of the ricotta mixture, and 1 1/2 (level) cups of meat sauce. Repeat the layers twice.
Add a final layer of the remaining noodles, meat sauce, 1 cup mozzarella, and 1/4 cup parmesan.
Cover with foil that has been sprayed with nonstick cooking spray. Bake for 45 minutes. Remove the foil. Bake 15 more minutes.
Let the lasagna cool for 15-20 minutes before cutting.