On medium-low temperature, heat Italian sausage, onions, peppers and garlic in a pot until they start to cook. It takes about 6 to 9 minutes to brown the meat. It is optional to remove the grease from the meat once it is finished browning.
Add can of crushed tomatoes, tomato sauce, tomato paste, water. Gently stir this into the cooking meat.
Then add white sugar, fresh Basil leaves, fresh thyme, Italian parsley, salt, pepper, oregano and chilli flakes. Gently stir these seasoning into the sauce.
Cover the pot and let the meat sauce simmer. Simmer on low heat for 1 hour.
Meanwhile, soak the lasagna noodles in hot water for 15 minutes. While the noodles are soaking you can make the cheese filling.
In a separate bowl mix ricotta cheese, grated nutmeg, one egg and one pound of shredded mozzarella cheese.
Now start to build the lasagne. First spread a thin layer of meat sauce mixture at the bottom of your baking dish followed by lasagna noodles then cheese mixture, then parmesan cheese. Keep repeating these steps until you are out of noodles. Finish with a final layer of meat sauce. Sprinkle with remaining parmesan cheese and any mozzarella that might be left over.
Cover with foil. Bake in preheated oven at 350 F (177 C) for 25 minutes. Remove foil and bake uncovered for another 25 minutes.