1 lb. ground meat
1 egg
1/2 c. diced bread crumbs
2 tbsp. grated onion
1/4 tsp. nutmeg
1/4 tsp. salt
2 tbsp. salad oil
1 (3 oz.) pkg. cream cheese
3/4 c. milk
1/2 c. water
2 tbsp. chopped parsley
1/8 tsp. thyme

In medium bowl, mix first 5 ingredients with salt. Shape meat mixture in 1 inch meat balls. In skillet, cook in oil on medium heat until brown. Pour all drippings off except 2 tablespoons. Cut in cream cheese after cutting in chunks. Add remaining ingredients; cook over low heat, stirring until smooth. Add meat balls. Heat; keep stirring.