In a medium skillet heat 1 TBS oil. Add in diced onion and bell pepper. Cook until softened. Add in ground beef. Break it up and cook until no longer pink. Drain excess grease.
Stir in minced garlic for 30 seconds. Stir in pasta sauce, salt, black pepper, sugar, butter, and Italian seasoning. Turn off heat.
In a medium bowl mix together egg, 8 oz mozzarella cheese, and cottage cheese.
Spray a 9" x 5" x 3" loaf pan with non-stick cooking spray. Place 1/2 cup meat mixture into bottom of prepared loaf pan. Place 1 sheet of oven ready lasagna noodle on top of meat mixture. Break another up to fit in uncovered areas.
Spread 1/2 of the cheese mixture onto the lasagna noodles in loaf pan evenly. Spread 1/2 of the meat mixture on top of the cheese mixture and spread evenly.
Layer another sheet of lasagna noodle and place broken pieces in to fill gaps. Spread remainder of the cheese mixture on top of the noodles and spread evenly. Place another layer of lasagna noodles. Spread remainder of the meat mixture on top. Spread 8 oz mozzarella cheese on top to cover. Sprinkle with Italian seasoning.
Spray a piece of foil a and place sprayed side down on top of cheese and tightly cover dish. Bake in a 375 degree preheated oven for 30 minutes and remove foil. Bake another 15-20 minutes until cheese is golden brown and lasagna is bubbly.
Let sit for 8-10 minutes before serving.