In a large saucepan, cook beef over medium heat until meat is no longer pink. Add garlic; cook 1 minute longer. Drain. Stir in the water, tomato sauce and paste, soup mix, oregano, sugar and pepper. Bring to a boil. Reduce heat; cover and simmer for 30 minutes.
Spoon 1/2 cup meat sauce into a greased 13-in. x 9-in. baking dish. Layer with three noodles and a third of the cottage cheese, mozzarella, meat sauce and Parmesan cheese. Repeat layers twice.
Cover and bake at 350° for 40 minutes or until bubbly and heated through. Uncover; bake 5-10 minutes longer. Let stand for 10 minutes before cutting. Yield: 12 servings.