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Step 1
In a medium pot, cook ground beef and onion over medium heat. Continue to cook and crumble beef until no longer pink. Drain any grease.
Step 2
Add minced garlic and cook for 30 seconds. Pour in diced tomatoes, tomato sauce, paste, oregano, basil, Italian seasoning, sugar, salt and pepper. Stir and bring mixture to a boil. Reduce heat to low and let simmer for 30 minutes.
Step 3
Meanwhile, boil lasagna noodles in a large pot of water until al dente. Drain water, then lay noodles out on a wax-paper lined baking sheet. (Don't let noodles touch because they will stick.)
Step 4
Spread 1 cup of sauce on the bottom of a 9x13-inch baking dish. Lay 3 noodles over sauce. Drop a third of the cream cheese, by teaspoonfuls, over the noodles. Sprinkle 1/2 cup Mozzarella and 1/2 cup Parmesan cheese on top, then spoon a third of the sauce on top. Repeat layers two more times, ending with the last of the cheeses. (Sprinkle very top with dried Parsley, if desired.)
Step 5
Cover with foil. Bake in a preheated 350 degree F. oven for 45 minutes. Carefully remove foil (it will be hot!) then bake another 5 to 10 minutes or until cheese is bubbly and melted. Remove from oven and let stand 10 minutes before slicing and serving. Enjoy!