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Sunday Gravy

Our gravy quest ended with this keeper.  Its mostly Buddy Valastro's with a few modifications from friends and family.
olive oil
1 large onion diced
1 garlic head diced
1 T fresh oregano chopped (about 4 sprigs)
2 T fresh basil chopped (about 16 leaves), divided
3 28 oz cans plum tomatoes (we use redpack)
3 28 oz cans crushed tomatoes (we use redpack)
1 can water
6 t sugar
1 t salt
1 lb uncooked sweet italian sausage
1 lb uncooked meatballs
coat bottom of stockpot with oil and sauté onions until translucent
add garlic, 1 T basil, and oregano and sauté for another minute
add tomatoes, water, sugar and salt and bring to a boil
reduce to simmer and add sausage and meatballs
simmer for 3½ hours, stirring occasionally to make sure nothing sticks
remove meats to a platter and add remaining basil
serve over pasta, adding meats and grated cheese