In large bowl, mix pasta sauce and water. Pour 1 cup of the pasta sauce mixture in bottom of ungreased 13x9-inch (3-quart) glass baking dish. In medium bowl, mix cheese spread, 1 cup of the Italian cheese, the Parmesan cheese, egg and cooked ground 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.