MEATBALLS:

2 lb. lean ground beef
1 c. bread crumbs
1 egg
1 med. onion, chopped fine
3/4 c. milk
2 tbsp. oil

SAUCE:

12 oz. jar chili sauce
12 oz. jar grape jelly

Mix onion, egg, bread crumbs and milk. Let stand 5 minutes. Mix in ground beef and then roll into 40-50 meatballs. Brown meatballs in skillet with 2 tablespoons oil. Drain meatballs and set aside.

In a 2 quart saucepan melt grape jelly and chili sauce. When sauce is bubbly add meatballs and simmer for 30 minutes. Yield 40-50 bite-size meatballs.