In dutch oven, cook sausage, beef, onion & garlic over medium heat until well-browned. Stir in crushed tomatoes, paste, sauce & water. Season with sugar, basil, fennel seeds, Italian seasoning, 1 T. salt, pepper & 2 T. parsley. Simmer, covered, for about 1 1/2 hours, stirring occasionally. Bring large pot of water to boil. Cook lasagna noodles in boiling water for 8-10 minutes. Drain noodles & rinse with cold water. In mixing bowl, mix ricotta cheese with egg, remaining parsley & 1/2 tsp. salt. Preheat oven to 375°. To assemble, spread 1 1/2 C. meat sauce in bottom of 9 x 13 pan; arrange 6 noodles lengthwise over sauce. Spread with 1/2 ricotta cheese mixture; top with 1/3 of cheese slices. Spoon 1 1/2 C. meat sauce over mozzarella & sprinkle with Parmesan cheese. Repeat layers & top with remaining mozzarella & Parmesan cheese. Cover with foil & bake in preheated oven for 25 minutes. Remove foil & bake an additional 25 minutes. Cool 15 minutes before serving.
