MEATBALLS:

1 lb. ground beef
1/2 c. bread crumbs
1/4 c. diced onions
1/2 c. milk
1 tsp. salt
1/8 tsp. pepper
3 level tbsp. butter

SAUCE:

1/4 c. butter
1/4 c. flour
1 tsp. salt
1 tbsp. sugar
1 tbsp. mustard
1 egg, beaten
1/8 tsp. pepper
2 1/4 c. buttermilk

Combine all ingredients except butter. Shape into balls and brown on all sides in the butter, remove from pan and keep warm.

Add butter to drippings left in skillet. Mix flour, sugar, dry mustard, salt and pepper. Add flour mixture to skillet of drippings. Blend thoroughly.

Gradually add buttermilk while stirring. Cook over low heat until sauce is smooth and thickened, stirring constantly. Stir some of the hot sauce into the beaten egg, return to skillet, cook 2 to 3 minutes more. Pour sauce into greased 1 1/2 quart casserole. Add meatballs and bake uncovered in a slow, 325 degree, oven for 30 minutes.

This dish can be prepared sometime before it is served and kept hot in the oven.