Brown and drain beef in a large saucepan. Add sauce and water. Simmer for 10 minutes.

Mix remaining ingredients, except noodles, in medium bowl.

Pour 1 cup of sauce into 13x9 inch baking dish. Place a layer of noodles in bottom of pan. Pour 1 cup of sauce mixture over the noodles. Spread a layer of the cheese mixture over the sauce. Repeat (noodles, sauce, cheese).

Cover with foil and bake for 1 hour at 350 degrees. Remove foil and bake 10 minutes longer. Remove from oven and let stand for 10 minutes before serving.