1 1/2 lb. lean ground beef
1 can (8 oz.) water chestnuts, drained, chopped
2 eggs
1/2 c. dry bread crumbs
1 tbsp. instant beef bouillon
1 jar (16 oz.) peach preserves
1 jar (12 oz.) chili sauce
1 pkg. (1.5 oz.) onion soup dip mix

In large bowl, combine meat, chestnuts, eggs, bread crumbs and bouillon; mix well. Shape into 1 1/4 inch meatballs. In large skillet, brown meatballs. Remove from pan. Pour off fat. Combine remaining ingredients. Over low heat, cook and stir 5 minutes. Add meatballs. Simmer uncovered 10 minutes. Refrigerate leftovers. Makes about 4 dozen.