BALLS:

1 lb. ground beef
1/2 c. raw rice
1 egg
1/4 c. milk
2 tsp. minced onion
1 tsp. salt
1/2 tsp. chili powder

SAUCE:

1 can tomato soup
1 1/2 c. water
2 tsp. minced onion
1/3 tsp. chili powder

Mix first 7 ingredients together. Form small meatballs. Place in 9"x13" baking dish. Combine last 4 ingredients. Pour sauce over meatballs. Bake 1 to 1 1/2 hours, uncovered at 350 degrees.