In a large skillet, heat olive oil over medium heat. Add chopped onion and sauté until translucent. Stir in minced garlic, then add ground beef and cook until browned. Mix in diced tomatoes, tomato sauce, water, bay leaves, and seasonings. Simmer for 1-2 hours.

In a mixing bowl, combine ricotta cheese, mozzarella cheese, Parmesan cheese, dried basil, chopped parsley, salt, and pepper. Mix until well combined and set aside.

Boil lasagna noodles according to package directions, cooking for about 2/3 of the recommended time. Drain and soak in cold water to stop cooking.

Preheat oven to 375°F (190°C). In a greased baking dish, spread a thin layer of meat sauce, layer noodles, cheese mixture, and more meat sauce. Repeat layers finishing with noodles and remaining sauce. Top with mozzarella cheese.

Cover with greased foil and bake for 45 minutes. Remove foil and bake uncovered for an additional 15 minutes until golden brown.

Let cool for 20-30 minutes before slicing. Serve warm, optionally garnished with dried herbs.