1 1/2 lb. ground beef
1 1/2 c. fresh bread crumbs
1/2 c. finely chopped onion
1/3 c. milk
1 egg

Mix and shape into 1 inch balls. Brown on cookie sheet in 325 degree oven. Watch!

SAUCE:

1 (16 oz.) pkg. Velveeta cheese
1 (4 oz.) can chopped green chilies
Taco seasoning to taste
3/4 c. water

Melt cheese and add other ingredients. Pour over meatballs. Serve with cornbread.