Place canned tomatoes in a blender and puree. Set aside.
Prepare gnocchi according to directions on package.
Heat 2 tablespoons olive oil in large saucepan until soft. Add 1 teaspoon of garlic and sauté for 1 minute.
Then add pureed tomatoes, 6 ounces tomato paste, 1 tablespoon Italian seasoning, 1 teaspoon salt, 1/2 teaspoon sugar, and 1/2 pepper. Bring to a simmer.
Add 4 ounces of cream cheese, reduce heat, and cook for 20 minutes, stirring occasionally to make sure the cream cheese is melted.
Stirring continuously, add 1/2 cup of half and half. Continue cooking on low heat for an additional 10 minutes.
Pour over cooked gnocchi, tossing until well coated.
Garnish with basil and grated parmesan cheese.
Serves 4-6.