Preheat oven to 350 degrees F. Brown meat in large skillet on medium-high heat. Meanwhile, mix egg, 1-1/4 cups of the mozzarella cheese, the ricotta cheese, 1/4 cup of the Parmesan cheese and the parsley until well blended; set aside.
Drain meat; return to skillet. Stir in spaghetti sauce.
Add water to empty sauce jar; cover with lid and shake well.
Add to meat mixture; stir until well blended.
Spread 1 cup of the sauce onto bottom of 13x9-inch baking dish; top with layers of 3 lasagna noodles, one-third of the ricotta cheese mixture and 1 cup of the sauce. Repeat layers twice. Top with remaining 3 noodles and the remaining meat sauce.
Sprinkle with remaining 1-1/4 cups mozzarella cheese and remaining 1/4 cup Parmesan cheese. Cover with greased foil.
Bake 45 minutes.
Remove foil; bake an additional 15 minutes or until heated through.