1 pound ground beef
1 yellow onion, diced
2 (26 ounce) jars tomato, onion, and garlic spaghetti sauce (such as Prego®)
1 tablespoon dried basil 1 large bay leaf
1 teaspoon dried oregano 1 teaspoon celery salt
1 (16 ounce) package elbow macaroni
1 (10.75 ounce) can condensed cream of mushroom soup
1/2 cup water
2 1/4 cups shredded sharp Cheddar cheese, divided