In a medium bowl, mix all the meatball ingredients together, mix well.
Shape into 30 small meatballs.
In a large saucepan, brown the meatballs in hot oil, remove.
Add the onions and garlic and cook for 5 minutes. Add the rest of the sauce ingredients, 1/2 cup of water, and the meatballs. Stir to combine, bring to a boil, reduce heat and simmer, uncovered, for 1 1/2 hours, stirring occasionally.
Preheat the oven to 350 F.
Cook the lasagna noodles in water, drain.
Grease a large pyrex dish.
Spread the mozzarella, ricotta, tomato sauce with the meatballs, and parmesan cheese over the noodles. Repeat.
Cook in the oven at 350 F, for 30 to 35 minutes.