Peel and dice the butternut squash into small cubes and set aside.
Bring a pot of salted water to a boil, add the penne pasta, and cook until al dente, about 8-10 minutes. Drain and set aside.
In a large oven-safe skillet, heat olive oil over medium heat. Add diced butternut squash and sauté for about 5 minutes until it starts to soften. Add Italian sausage and cook until browned, about 5-7 minutes.
Stir in cooked penne pasta, vegetable broth, heavy cream, garlic powder, onion powder, dried thyme, salt, and pepper. Simmer for about 2-3 minutes.
Remove from heat, sprinkle mozzarella cheese on top, and bake in a preheated oven for 15-20 minutes until cheese is bubbly and golden brown.
Let cool for a few minutes, garnish with chopped parsley, and serve.