In a medium saucepan bring the water, milk, 1 tsp salt, and 1/2 tsp pepper to a boil over high heat (careful not to let it boil over).
Reduce heat to low and stir in the cornmeal. Cook, stirring often, until thickened, about 7 minutes. Take off the heat and stir in the beaten egg yolk and Parmesan cheese.
Line the bottom of a baking sheet with aluminum foil and spread the polenta evenly on the baking sheet to for a rectangle roughly 8x12 inches. Fold the sides of the foil up to help the polenta keep its shape. Refrigerate for about 2 hours to allow the polenta to firm up.
THE SAUCE:
Add the tomatoes to a blender or food processor and pulse a few times but dont completely puree, you want it to be a little bit chunky.
Heat the oil in a saucepan over medium heat.
Stir in the garlic, oregano, and salt and cook until fragrant, just a few seconds.
Pour in the tomatoes and bring to a boil.
Reduce heat to low and cook, stirring occasionally, about 10 minutes.
Take sauce off the heat, stir in the fresh basil and set aside.
ASSEMBLY:
Preheat the oven to 400°F. Lightly oil a 9x13 baking dish.
Take the polenta out of the fridge and carefully invert it onto a cutting board and remove the foil. Cut the polenta into squares about 2-inches by 2-inches (if your polenta rectangle was 8x12 you should end up with 24 squares). Place the cut polenta pieces in the baking dish in 3 rows of 8 slightly overlapping each other.
Spoon the sauce over the polenta and bake uncovered in the preheated oven for 30 minutes.
Remove from the oven and sprinkle on the freshly grated Parmesan and parsley.
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