MEATBALLS:

1 lb. ground beef
3/4 c. dry bread crumbs
1 egg
1/2 c. water
3/4 tsp. salt
1 tsp. onion, chopped finely
1/4 tsp. pepper
1/4 tsp. nutmeg

GRAVY:

3 tbsp. drippings from meat
3 tbsp. flour
2 1/2 c. cold water
1 pkg. French onion soup mix (dehydrated)
1/2 c. cream or evaporated milk
Scant 1/4 c. sherry
1/2 tsp. Accent
1/2 tsp. Worcestershire sauce
Salt and pepper

Mix all meatball ingredients until smooth. Shape into balls the size of walnuts. Brown in 2 tablespoons fat. Remove gently from pan.

Prepare gravy in same skillet; blend and cook drippings, flour, and cold water until thickened. Add soup mix, cream, sherry, Accent, Worcestershire and salt and pepper. Return meatballs to the gravy. Cover and simmer 1/2 hour. Stir occasionally.

Serve over rice, noodles, or mashed potatoes. Freezes well. Can be doubled or tripled.