Preheat Oven: Preheat oven to 375 degrees F (190 degrees C). Lightly grease a 9x13-inch baking dish. Set aside.
Brown Beef and Aromatics: In a large skillet over medium heat, cook ground beef until it's mostly browned (about 4-5 minutes), breaking it up as it cooks. Then add diced onion and garlic. Continue cooking another 3-4 minutes, until beef is fully browned and onions are soft. Spoon out excess grease if needed.
Season Beef: Stir in Italian seasoning, salt, and pepper. Cook 1 more minute to let seasoning bloom.
Assemble in Baking Dish: Pour cooked beef mixture into prepared baking dish. Add uncooked pasta, pasta sauce, hot water, diced tomatoes (with juices), and 1 cup shredded cheddar cheese.
Stir Everything Together: Stir well until everything is evenly mixed and pasta is coated. Make sure pasta is mostly submerged in liquid (press it down with a spoon, if needed). If not submerged, add a little more hot water (2-4 Tablespoons).
Cover and Bake: Cover tightly with foil and bake for 40 minutes.
Uncover and Finish Baking: Remove foil, carefully stir everything, then sprinkle remaining ½ cup cheese over top. Return to oven uncovered and bake 10 more minutes, until cheese is melted and pasta is fully cooked.
Let Rest Then Serve: Let casserole sit uncovered for 5-10 minutes to help it set (this makes scooping easier). If there's still excess liquid, wait a few minutes longer or gently stir to help absorption. You can also return it briefly to the oven uncovered if needed. Add optional garnishes then serve.