Fry onion in oil. Put in meat. Cook rice and add to meat mixture. Add salt and pepper. Stir in one egg. Stuff peppers.
For sauce to pour over peppers: Mix 2 tablespoons butter and 2 tablespoons flour. Put in 4 cups cold water and 1 bottle ketchup. Let this mixture come to a boil. Add sugar. Place stuffed peppers in a large bread pan (with sides). Pour sauce mixture over peppers. Boil at low temperature. May have to stir sauce to avoid burning. Cook for 45 minutes. Serve hot.