1 egg, lightly beaten
1 can (5 oz.) evaporated milk
1 c. quick cooking oats
1/2 c. finely chopped onions
1 tsp. salt
1 tsp. chili powder
1/4 tsp. garlic powder
1/4 tsp. pepper
1 1/2 lb. ground beef

In a bowl, combine the first eight ingredients. Crumble beef over mixture and mix well. Shape into 1 inch balls, place in 13 x 9 x 2 inch baking dish.

Bake uncovered, at 350°F for 18 to 20 minutes or until meat is no longer pink. Meanwhile combine the sauce ingredients.

Sauce:

1 c. ketchup
3/4 c. chopped onion
3/4 c. packed brown sugar
1/4 tsp. garlic powder

Combine the sauce ingredients in a saucepan. Bring to a boil. Reduce heat and simmer for 2 minutes, stirring frequently. Pour over meatballs.

Bake 10-12 minutes longer.

Makes 4 dozen.