Preheat the oven to 400°F and lightly grease a 9×13-inch baking dish.
In a large mixing bowl, combine the pasta sauce, water, ricotta, 1 cup of the shredded mozzarella, chopped cooked chicken, grated Parmesan, and the uncooked penne; stir until evenly mixed.
Transfer the mixture to the prepared baking dish and spread into an even layer; cover the dish tightly with foil.
Bake covered for 55 minutes, until the pasta is tender when tested with a fork.
Remove the foil, sprinkle the remaining 1 cup shredded mozzarella over the top, and return to the oven; bake uncovered for an additional 5–10 minutes until the cheese is melted and bubbly.
Remove from the oven, sprinkle with chopped fresh basil, and let rest a few minutes before serving.
