For the tomato sauce: Cook the ground sirloin in a pan over medium heat until it is cooked through, about 10 minutes. Meanwhile, heat the oil in a large pan over medium heat.
Add the mushrooms and half the onion and saute, about 8 minutes.
Drain and set aside.
Combine the tomatoes, garlic and remaining onion in a blender and pulse until the mixture is smooth.
Transfer to a large stock pot over medium heat.
Add the sugar, crushed red pepper, salt, basil, sirloin and mushroom mixture. Bring to a boil and simmer until slightly thickened. Set aside.
For the filling: In a large bowl, combine the ricotta and eggs with a spoon.
Add the Parmesan, parsley and pepper, and mix well. Set aside.
For the manicotti crepes: In a large mixing bowl, whisk together the flour and egg.
Add the milk and 1/4 cup water and combine.
Spray a nonstick pan with cooking spray and heat over medium heat.
Pour or scoop 2 to 4 tablespoons batter into the pan. Tilt the pan in a circular motion so that the batter coats the bottom of the pan evenly. Cook the crepe until the bottom is a light brown, about 2 minutes. Loosen with a rubber spatula, flip over and cook the other side. Repeat this process with the rest of the batter. Set crepes aside.
Preheat the oven to 350 degrees F.
Place 2 to 3 tablespoons of the ricotta filling in the middle of each crepe and roll up.
Place the crepes, seam-side down, in an 11-by-17-inch baking dish. Cover the crepes with tomato sauce then sprinkle with a thin layer of Parmesan.