Preheat your oven to 350°F and lightly grease a 9x13 inch baking dish. Dice the onion into ¼-inch pieces, seed and chop the green bell pepper into similar-sized pieces, and mince the garlic. Bring a large pot of salted water to a boil and add the egg noodles. Cook for 5 to 6 minutes until just al dente (they'll finish cooking in the oven), then drain and set aside. I always use No Yolks noodles because they have a better texture and don't get mushy when baked.
In a medium bowl, combine the softened cream cheese, cottage cheese, and sour cream. Mix until smooth and well combined—this should take about 1 to 2 minutes of stirring. Add the 3 tablespoons of butter and stir until it's fully incorporated into the mixture. I prefer Breakstone's sour cream for its extra creaminess, which really elevates the richness of this casserole.
Heat the olive oil in a large skillet over medium-high heat. Add the ground beef and cook for 3 to 4 minutes, breaking it apart with a spoon as it cooks. Add the diced onion, green pepper, and minced garlic, then continue cooking for another 2 to 3 minutes until the vegetables soften and the beef is fully browned. Drain off any excess fat. Stir in the diced tomatoes, tomato soup, Worcestershire sauce, and smoked paprika, mixing well to combine all the flavors.
Spread half of the cooked noodles from Step 1 in an even layer on the bottom of the prepared baking dish. Dollop half of the creamy cheese mixture from Step 2 over the noodles and spread gently to cover. Pour half of the meat sauce from Step 3 over the cheese layer. Repeat with the remaining noodles, cheese mixture, and meat sauce to create a second layer. Make sure the layers are somewhat evenly distributed so each bite has all the flavors.
Sprinkle the shredded cheddar cheese evenly over the top of the casserole. For the best melting and texture, I always shred cheddar from a block rather than using pre-shredded—it melts more smoothly without the anti-caking agents. Place the dish in the preheated 350°F oven and bake for 25 to 30 minutes, until the cheese is melted and bubbly and the edges are slightly golden.
Remove the casserole from the oven and let it rest for 5 minutes. This resting period allows the layers to set slightly and makes serving much easier. Garnish with the fresh chopped parsley just before serving for a bright, fresh pop of color and flavor.