3/4 c. chopped onions
1 clove minced garlic or powder
3 tbsp. olive or salad oil
2 cans (1 lb.) tomatoes
2 (6 oz.) cans tomato paste
1 c. water
1 tbsp. sugar
1 1/2 tsp. salt
1/2 tsp. pepper
1 1/2 tsp. oregano
1 bay leaf
Plus Italian Meat Balls

ITALIAN MEAT BALLS:

4 slices dry bread
1 lb. ground beef
2 eggs
1/2 c. grated Romano cheese
2 tbsp. parsley
1 clove minced garlic (or powder)
1 tsp. oregano
1 tsp. salt
Dash pepper

Cook onions and garlic in hot oil until tender (not brown). Stir in next 8 ingredients. Simmer uncovered 30 minutes. Remove bay leaf. Add Italian meatballs and continue cooking about 30 minutes.

Meatballs: Soak bread in water 2-3 minutes, then squeeze out moisture. Combine bread with remaining ingredients. Form into small balls. Brown slowly in olive oil. Add to sauce.