1 1/2 c. chopped onion
3 tbsp. salad oil
1 (12 oz.) can tomato paste
2 tbsp. sugar
1 tsp. dried basil, crushed
3 bay leaves
1 tbsp. grated Parmesan cheese
Meatballs
3 sm. cloves garlic, crushed
2 (29 oz.) cans tomatoes, cut up
4 beef bouillon cubes
2 tsp. dried oregano, crushed
1/4 tsp. pepper
2 (6 oz.) cans sliced mushrooms, drained (optional)
2 lbs. spaghetti, cooked and drained

In large dutch oven, cook onion and garlic in oil until tender but not brown. Stir in next 8 ingredients and 3 cups water. Bring to boiling; reduce heat and simmer, uncovered 2 hours. Stirring occasionally. Remove bay leaves. Add mushrooms and cheese. Simmer until of desired consistency, about 30 minutes more. Meanwhile, prepare meatballs. To serve, place hot meatballs atop hot spaghetti spoon sauce over. Pass additional Parmesan cheese, if desired. Makes 14 servings.

Meatballs: Combine 3 beaten eggs, 3/4 cup milk, 2 cups soft bread crumbs, 1/2 cup grated Parmesan cheese, and 1 teaspoon salt. Mix in 2 pounds ground beef and 1 pound Italian sausage. Shape into 42 medium sized meatballs. Place in shallow baking pans. Bake at 375 degrees for 30 to 35 minutes or until done. Drain off fat.