Brown meat in large skillet on medium-high heat. Meanwhile, mix 1 1/4 cups mozzarella, ricotta cheese, 1/4 cup Parmesan, parsley and egg until well blended; set aside.
Drain meat; return to skillet. Stir in spaghetti sauce. Add 1 cup water to empty sauce jar; cover with lid and shake well. Add to meat mixture; stir until well blended. Spread 1 cup meat sauce onto bottom of 13x9-inch baking dish; top with layers of 3 lasagna noodles, 1/3 of the ricotta cheese mixture and 1 cup meat sauce. Repeat layers twice. Top with remaining noodles, meat sauce and cheeses. Cover with greased foil.
Bake 1 hour or until heated through, removing foil after 45 min. Let stand 15 min. before cutting to serve.
