Slow Oven Parmesan Beef

1 ½ lbs. round steak
1 egg, beaten
1/3 cup freshly grated Parmesan
1/3 cup dry breadcrumbs
1/3 cup vegetable oil
1 medium onion, finely chopped
½ t. salt
¼ t. pepper
1/3 cup sugar
1 can (6 oz) tomato paste
2 cups hot water
½ lb. Mozzarella or Monterey jack, shredded

Flatten meat to ½ inch thickness; cut into 6 to 8 pieces. Beat egg with fork. Mix together Parmesan and bread crumbs. Dip meat first in egg, then in crumbs. Brown in skillet with oil; place meat in 9x13 baking dish. Use same oil and skillet to sauté onion. Add salt, pepper, sugar, tomato past and water; boil 5 minutes. Pour half of sauce over meat. Cover with cheese and then remaining sauce. Bake at 300 degrees for 1 ½ hours.