Baked Mostaccioli

8 ounces mostaccioli noodles
1-1/2 pounds ground beef
1/2 cup chopped onion
1 garlic clove, minced
1 can (28 ounces) whole tomatoes, cut up
1 can (8 ounces) tomato sauce
1 can (6 ounces) tomato paste
1 can (4 ounces) sliced mushrooms
1/2 cup water
1 to 1-1/4 teaspoons salt
1 teaspoon sugar
1 teaspoon dried basil
1/8 teaspoon pepper
1 bay leaf
2 cups (8 ounces) shredded mozzarella cheese
1/2 cup grated Parmesan cheese

Cook mostaccioli according to package directions; drain and set aside. In a large saucepan, brown ground beef, onion and garlic; drain. Stir in tomatoes, tomato sauce and paste, mushrooms, water, salt, sugar, basil, pepper and bay leaf.

Bring to a boil; reduce heat and simmer for 30 minutes, stirring occasionally. Remove bay leaf. Stir in mostaccioli. Spoon half into a 13 x 9 x 2-inch baking dish. Sprinkle with mozzarella cheese; layer with remaining meat mixture.

Sprinkle with Parmesan cheese. Cover with foil. Bake at 350 ° for 30-35 minutes or until heated through. Let stand 5 minutes before serving. Makes 10-12 servings.