Preheat the oven to 400°F and grease a deep 9 x 13-inch baking dish to prevent sticking.
In a Dutch oven over medium heat, cook and crumble the bulk Italian sausage, ground beef, and diced onion until the meat is no longer pink, about 5-7 minutes; drain off any excess fat.
Add minced garlic and tomato paste to the meat mixture; cook and stir for about a minute before adding crushed tomatoes, tomato sauce, water, brown sugar, chopped parsley, dried basil, kosher salt, and ¼ teaspoon of black pepper.
Bring this mixture to a boil then reduce heat to low; allow it to simmer uncovered until slightly thickened—this should take about 10-15 minutes.
In a separate bowl, combine lightly beaten egg with ricotta cheese, 1¼ cups of grated Parmesan cheese, and remaining black pepper; mix until smooth.
Spread 2 cups of meat sauce on the bottom of your prepared baking dish then layer with three noodles followed by one-third of the ricotta mixture and one cup of shredded mozzarella cheese; repeat these layers two more times before topping with remaining meat sauce, mozzarella, and remaining Parmesan cheese.