Preheat the oven to 350°F.
Bring a large pot of salted water to a boil, then add the pasta. Cook the pasta until they’re al dente, then drain and rinse with cool water.
Heat a large skillet over medium heat and add the cooking oil. Brown the Italian sausage.
Add the diced onion and minced garlic to the skillet. Sauté until the onion is translucent and the garlic is fragrant.
Add the Italian seasoning, garlic powder, salt, black pepper, and tomato paste to the skillet. Stir until combined.
Add the crushed and diced tomatoes and sugar to the skillet. Stir everything together and reduce the heat to low. Simmer for 3 minutes.
Add the cooked pasta to the skillet and mix with the meat sauce.
In a medium bowl, combine ricotta, ½ cup shredded mozzarella, ¼ cup grated parmesan, chopped parsley, salt, black pepper, and the egg. Stir well.
In a large casserole dish, add half of the pasta sauce as the first layer.
Spread the cheese mixture on top of the pasta sauce, then add the rest of the pasta sauce on top of the cheese.
Sprinkle 1 cup shredded mozzarella and ¼ cup grated parmesan cheese over the top.
Loosely cover with aluminum foil and bake for 25 minutes. Remove the foil and bake uncovered for 10 more minutes, or until bubbling. Serve hot.