Brown ground beef and drain fat. Add salt, water, sauce, sugar, & simmer 5 to 10 minutes.
In a 13x9x2" casserole dish layer 1/3 sauce, 1/3 uncooked noodles, 1 cup cottage cheese, 1/4 Kraft Parmesan cheese and 1 cup Kraft Mozzarella Cheese. Repeat, and end with the mozzarella and parmesan cheeses.
Cover with foil and bake at 350°F for 55 to 60 minutes. Remove, uncover some of the foil and let stand for 10 minutes before serving.