1 lb. ground beef
1/4 c. finely chopped onion
1/4 c. chopped green pepper
1/4 tsp. pepper (optional)
1/4 to 1 tsp. salt
1 c. fine cracker crumbs (about 30)
1 egg
1 c. milk
1 can mushroom soup
1/3 c. flour

Combine first 7 ingredients in bowl; mix well. Blend milk and soup until smooth. Add 1/4 of the soup mixture to ground beef mixture; mix well. Shape into balls; roll in flour. Brown on all sides in a small amount of shortening in skillet. Place in casserole. Pour remaining soup mixture over meatballs.

Bake at 350°F for 30 minutes.