Heat a large pot over medium. Add the ground beef and Italian sausage, breaking meat into crumbles. Cook for 8–10 minutes until browned and some pieces caramelize.

Drain excess fat from the pot to keep the sauce from becoming greasy.

Add the chopped onion and garlic to the pot. Sauté for 2–3 minutes until the onion is softened and fragrant.

Stir in crushed tomatoes, tomato paste, tomato sauce, and water. Mix thoroughly.

Season the sauce with sugar, dried basil, fennel seeds, Italian seasoning, salt, black pepper, and parsley.

Bring the sauce to a low boil, lower the heat and simmer uncovered for 90 minutes, stirring occasionally.

While the sauce simmers, combine ricotta, egg, salt, black pepper, and parsley in a bowl. Stir until smooth and set aside.

Bring a large pot of salted water to a boil. Add the lasagna noodles and cook for 8–10 minutes until al dente. Drain and rinse with cold water.

Preheat the oven to 375°F (190°C) and grease a 9×13-inch baking dish.

Spread 1 cup of meat sauce evenly across the bottom of the baking dish.

Layer three noodles over the sauce, slightly overlapping. Spread 1/3 of the ricotta mixture over the noodles. Sprinkle with 1/3 of the shredded mozzarella and 1/4 cup Parmesan.

Repeat two more times: sauce, noodles, ricotta, mozzarella, and Parmesan. For the final layer, top with remaining meat sauce and the remaining mozzarella and Parmesan.

Cover the dish with aluminum foil sprayed with cooking spray. Bake covered for 25 minutes. Remove foil and bake for another 25 minutes until cheese is golden and bubbling.

Let the lasagna rest for 15 minutes before slicing to let the layers set; serve warm.