In a large skillet, heat 1/4 cup of the olive oil and saute the onions and garlic until tender. In a sauce pan combine the cooked onions and garlic with the tomato sauce, basil, sugar and pepper. Bring to a boil then reduce heat and simmer for 20 minutes.
While the sauce is cooking, pare the eggplant and slice it lengthwise into thin slices (about 1/4 inch thick). In a shallow bowl, beat the egg with the milk. Put the bread crumbs in a second shallow bowl. Dip each piece of eggplant into the egg-milk mixture and then coat with the crumbs. Place the coated pieces on a rack.
Add the remaining 1/4 cup of olive oil to the skillet used to saute the onions and garlic. Heat the oil and saute the eggplant pieces until they are golden brown.
Put about 1/3 of the sauce into a 8-inch square baking pan.
Shred the mozzarella cheese and mix it with the ricotta. Put a generous teaspoonful of the cheese mixture in the middle of each eggplant slice and roll up. Place with seam side down in the tomato sauce in the pan. Cover with the tomato sauce and sprinkle the top with grated Parmesan.
Bake at 350F for 30 minutes.
YIELD: serves 6