Brown meat in large skillet on medium-high heat. Meanwhile, mix 1-1/4 cups mozzarella, ricotta, 1/4 cup Parmesan, parsley and egg until blended.
Drain meat; return to skillet. Stir in pasta sauce. Pour water into empty sauce jar; cover and shake well. Add to skillet; stir until blended.
Spread 1 cup meat sauce onto bottom of 13×9-inch baking dish; top with layers of 3 lasagna noodles, 1/3 of the ricotta mixture and 1 cup meat sauce. Repeat layers twice. Top with remaining noodles and meat sauce. Sprinkle with remaining mozzarella and Parmesan. Cover with foil sprayed with cooking spray.
Bake 1 hour or until heated through, uncovering after 45 min. Let stand 15 min. before cutting to serve.