Preheat the oven to 425°F. Spray an 8×8-inch casserole dish with non-stick cooking spray or line with parchment paper for easy cleanup.

In a small bowl, combine bread crumbs, 1/4 teaspoon Italian seasoning, and red pepper flakes. Set aside.

Brush eggplant rounds with olive oil. Press each into the breadcrumb mixture, turning to coat. In the bottom of the dish, arrange the eggplant in a single layer. Bake in the preheated oven for 15 minutes, or until golden brown. Remove from oven and set aside. Reduce the oven temperature to 375°F.

While the eggplant is baking, prepare the sauce. In a small saucepan over medium heat, whisk together the tomato paste and water.  Add the remaining 3/4 teaspoon Italian seasoning, brown sugar, salt, and pepper.  Simmer for 10 minutes. Adjust seasoning to taste.

Spoon an equal amount of sauce over each crispy eggplant round. For the last layer, sprinkle with mozzarella and parmesan cheeses.

Return to the reduced temperature oven to continue baking for an additional 15 minutes, until the mozzarella cheese is melted. Sprinkle with fresh basil and serve hot.