1 med. onion
2 tbsp. butter
1 egg
1/2 c. milk
1/2 c. fresh bread crumbs
1 1/4 tsp. salt
2 tsp. sugar
1/2 tsp. allspice
1/4 tsp. nutmeg
1 1/2 lb. (more or less) meat loaf mixture (ground beef, pork, veal)
2 tbsp. butter
3 tbsp. flour
1 tsp. sugar
1 1/4 tsp. salt
Dash of pepper
1 c. water
3/4 c. cream

Mince onion and saute in butter. In mixing bowl, combine egg, milk and next 5 ingredients. Add meat and sauteed onions, mixing until smooth and fluffy. Shape into 1 inch balls. Brown in butter; shake pan or keep turning to prevent sticking and to retain round shape.

Transfer to casserole or Dutch oven; repeat until all meatballs are browned. Into fat left in skillet, stir in flour, sugar, salt and pepper. Slowly add water and cream; stir until thickened. Check seasoning. Pour gravy over meatballs. Before serving, reheat in 325 degree oven for 30-40 minutes.