
In a large skillet over medium-high heat, add 1 tablespoon olive oil and 1 diced small onion. Cook the onion until it's tender.
Add the 1 pound ground beef and 1 pound Italian sausage and cook and crumble until brown and cooked through. Add 1 (28-ounce) can crushed tomatoes, 2 (6.5-ounce) can tomato sauce, 1 (6-ounce) can tomato paste, 2 tablespoons Italian Seasoning, ¼ cup sugar, 1 tablespoon fresh chopped basil, and salt and pepper to taste. Reduce the heat to low and simmer.
Bring a large pot of water to a boil. Add the 12 lasagna noodles and cook for 8-10 minutes. Drain and rinse in cold water.
In a medium-sized bowl, add the 16 ounces ricotta cheese, ½ cup finely grated parmesan, and 1 egg. Mix until incorporated.
Preheat oven to 375 degrees Fahrenheit and spray a 9x13 inch pan with non-stick cooking spray and set aside.
To assemble the lasagna, spread 1 cup of the meat sauce on the bottom. Arrange the noodles in a single layer over the meat sauce. Spread ½ cup of the ricotta cheese mixture on top of the noodles, followed by ⅓ of the 2 cups shredded mozzarella cheese. Repeat the layers and top with cheese.
Cover with aluminum foil and bake for 20 minutes. Remove the foil and bake for an additional 20-25 minutes or until it is heated throughout and the cheese is bubbly. Let it cool for 10 minutes before serving.