In a large pot with a heavy bottom, brown the sausage, beef and onion. Cook until nicely browned. Then add in the crushed tomatoes, tomato paste, tomato sauce, water, sugar, basil, Italian seasoning, parsley, crushed red pepper, salt and pepper. Let cook for about 30 minutes to combine all the flavors. Stir occasionally.
While that's cooking, bring a large pot of salted water to a boil. Cook noodles until pretty al dente (they continue to cook in the oven) then drain and rise with cold water. Preheat oven to 375°.
In a small bowl, combine the ricotta cheese, egg and season with a little salt and pepper.
Assemble lasagna! In a greased 9x13 dish, ladle a layer of meat sauce. Then top with lasagna noodles. I do 3 horizontal and one perpendicular on the end. Layer half of the ricotta mix on top of the noodles and then sprinkle with 1/3 of the mozzarella. Ladle more meat sauce and repeat those steps. Ending with sauce on top. Then you'll sprinkle the remaining mozzarella on top and sprinkle with the parmesan cheese.
Cover with foil (spray inside of foil with nonstick spray to prevent the cheese from sticking) and bake for 25 minutes. Then remove the foil and bake another 25 minutes. Let rest for 10-15 before serving. Enjoy!