Preheat the oven to 350°F.
Dice the onion.
Boil the noodles in a large pot until al dente.
In a large skillet, cook the ground beef with seasonings and diced onion, breaking the meat apart until no longer pink.
Add the tomato sauce, water, and sugar. Stir to combine.
In a large bowl, mix the cream cheese and sour cream together. Add the noodles and toss until coated.
In a greased 9x13 inch casserole dish, spread ⅓ of the meat sauce on the bottom. Top with half the noodles, then sprinkle half the cheese.
Add another third of the meat sauce, then the rest of the noodles. Spread the remaining meat sauce on top and sprinkle with the rest of the cheese.
Bake uncovered for 30-40 minutes until the cheese is melted and bubbly.
Let stand for 5 minutes before serving.