In a large pot, cook sausage, ground beef, onion, and garlic over medium heat until well browned.
Stir in crushed tomatoes, tomato paste, tomato sauce, and water. Season with sugar, basil, fennel seeds, Italian seasoning, pepper, cayenne and 1/2 of the parsley. Simmer, covered, for 1 to 1 1/2 hours, stirring occasionally.
In the lasagna pan, soak lasagna noodles in HOT tap water for 30 minutes while sauce finishes cooking.
Preheat oven to 375 degrees F (190 degrees C).
While oven heats: In a small mixing bowl, combine ricotta cheese with nutmeg, egg, remaining parsley and 1/2 teaspoon salt.
Drain noodles, dry lasagna pan and assemble as follows:
Spread 1 1/2 cups of meat sauce in the bottom of a lasagna dish. Arrange 6 noodles lengthwise over meat sauce. Spread with one half of the Ricotta cheese mixture. Top with a third of Mozzarella.
Spoon 1 1/2 cups meat sauce over mozzarella, and sprinkle with 1/4 cup Parmesan/Romano/Asiago cheese and noodles.
Repeat layers, and finish with remaining Mozzarella and Parmesan/Romano/Asiago cheese.
Cover with foil tent to prevent sticking, or spray foil with cooking spray, just make sure the foil does not touch the cheese.
Bake in preheated 350 degree oven for 25-30 minutes. Remove foil, and bake an additional 25-30 minutes. Cool for 15 minutes before serving.