Fry hamburger, onions, salt and pepper. Set aside.
Layer bread in a 9- by 13-inch cake pan. Mix cream cheese, salad dressing and Italian seasoning. Spread over bread slices and top with 1 cup cheese.
Mix spaghetti sauce, water and garlic powder; mix with hamburger. Pour this over cheese mixture.
Top with rest of cheese bake at 350 for 30 minutes. Serves 12.