In large bowl, mix pasta sauce and water. Pour 1 cup of the pasta sauce mixture in bottom of ungreased 13x9 glass baking dish. In medium bowl, mix cheese spread, 1 cup of the Italian cheese blend, the Parmesan cheese, egg and cooked beef. Spoon heaping tablespoon mixture into each shell. Arrange stuffed shells over sauce in baking dish. Pour remaining sauce over top, covering shells completely.
Cover with foil. Bake 40 to 45 minutes or until bubbly and cheese filling is set. Sprinkle with remaining 1/2 cup italian cheese. Bake about 10 minutes longer or until cheese is melted. Sprinkle with parsley.
**This recipe came from my good friend, Stefanie, and we all love it. Very easy, a great recipe to make a lot, freeze for later or for a friend.