Preheat oven to 400° F. Grease a deep 9 x 13-inch baking dish; set aside.
In a Dutch oven over medium heat, cook and crumble the sausage, ground beef and onion until the meat is no longer pink, 5-7 minutes; drain off the fat. Add garlic and tomato paste; cook and stir for 1 minute.
Stir in the crushed tomatoes, tomato sauce, water, brown sugar, parsley, basil, salt and ¼ teaspoon pepper. Bring to a boil. Reduce heat to low and simmer, uncovered, until slightly thickened, about 10-15 minutes.
In a separate bowl, stir together the egg, ricotta, 1 ¼ cups of Parmesan cheese, and remaining ¼ teaspoon pepper.
Spread 2 cups of the meat sauce in the bottom of the prepared baking dish. Layer with 3 noodles and ⅓ of the ricotta mixture. Sprinkle with 1 cup mozzarella cheese. Repeat layers twice. Top with remaining meat sauce, mozzarella, and Parmesan.
Cover with greased foil; place on a rimmed baking sheet (to catch drips if it bubbles over); bake for 30 minutes. Uncover; bake for 15-20 more minutes, or until browned on top and bubbly. Let stand at least 15 minutes before serving.