1 1/2 lbs. ground beef
3/4 c. dry bread crumbs
1 med. onion, finely chopped
1/2 c. milk
1 egg
2 tbsp. grated Parmesan cheese
1 tbsp. snipped parsley
1 1/2 tsp. salt
1/2 tsp. dried oregano leaves
1/4 tsp. ground black pepper

Mix all ingredients well. Shape mixture into 1 to 1 1/4 inch balls. (Dip hands into cold water to make shaping balls easier.) Bake uncovered in 350 degree oven until light brown (15 to 20 minutes). Use cookie sheet.

SAUCE:

1 med. onion, chopped
1 clove garlic, finely chopped
1 tbsp. olive oil
1 can (28 oz.) whole skinned tomatoes
1 can (6 oz.) tomato paste
1/4 c. water
1/4 c. snipped parsley
1 tsp. sugar
1 tsp. salt
1/2 tsp. dried basil
1/4 tsp. ground black pepper

Prepare meatballs. Cook and stir onions and garlic in oil in Dutch oven over medium heat until onion is tender. Add tomato and tomato paste, water, parsley, sugar, salt, basil and pepper. (Break up tomatoes with fork or hands.) Heat to boil, reduce heat. Add meatballs and simmer for at least 30 minutes.