1 lb. ground beef
1/2 c. bread crumbs
1 egg
1/4 c. milk
Pepper, salt, nutmeg and soy sauce to taste
3-5 tbsp. butter
1/2 c. water
3 tbsp. chili sauce
3 tbsp. catsup
1 tbsp. soy sauce
1 tbsp. Worcestershire sauce
1/3 c. sugar

Mix and shape first six ingredients into small (1 inch) meatballs. Fry a few meatballs at a time in butter in a 10-12 inch heavy skillet over medium heat until brown on all sides. Shaking the pan while the meatballs are cooking will help keep the meatballs round.

Mix remaining ingredients in saucepan and bring to boil. Lower heat and add the meatballs. Simmer over low heat 1/2 hour. Serve over rice or egg noodles.