Cook the penne pasta according to package instructions until al dente. Drain and set aside.
In a large skillet, heat the olive oil over medium heat. Add the minced garlic and sauté for about 1 minute until fragrant.
Stir in the crushed tomatoes, dried oregano, sugar, salt, and pepper. Bring to a simmer and cook for 10 minutes, stirring occasionally.
Add the cooked penne pasta to the skillet and toss to combine with the sauce.
Remove the skillet from heat and fold in the diced mozzarella cheese and half of the chopped basil.
Preheat your oven to 375°F. Transfer the pasta mixture to a baking dish and sprinkle the grated Parmesan cheese on top.
Bake for 15-20 minutes, or until the cheese is bubbly and golden.
Remove from the oven and let cool for a few minutes. Garnish with the remaining basil before serving.