Spray a large nonstick skillet with nonstick cooking spray. Add oil, and heat over a medium flame. Add onion and mushrooms. Cook, stirring frequently, for 3 to 5 minutes, until tender.
Add tomatoes, tomato sauce, water, sugar, and spices to skillet. When mixture begins to boil, stir in pasta. Cover, reduce heat to medium-low, and cook 20 minutes. Stir mixture every 4 to 5 minutes while cooking.