In a large skillet over medium heat brown sausage, ground beef, onion, and garlic. Stir in crushed tomatoes, tomato sauce, tomato paste, and water. Add basil, sugar, fennel seed, Italian seasoning, 1 tablespoon salt, pepper, and 2 tablespoons of parsley.
Cook lasagna noodles according to package directions. Drain and rinse with cold water.
In a medium bowl combine ricotta cheese, egg, remaining parsley and 1 teaspoon of salt. Mix well.
To assemble lasagna – spread 1 ½ cups of the meat mixture on the bottom of a 9 x 13” baking dish. Arrange 6 noodles lengthwise over the meat sauce. Spread half of the ricotta cheese mixture over the noodles evenly. Top with 1/3 of the mozzarella cheese slices. Spread 1 ½ cups of the meat sauce over the cheese slices and sprinkle a ¼ cup of Parmesan cheese on top. Repeat the layers and top with mozzarella cheese. Cover with foil.
Bake in the oven at 375 degrees for 25 minutes. After 25 minutes remove the foil and bake for another 25 minutes. Cool for 15 minutes and serve.