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

Sauce:

1 c. ketchup
3/4 c. packed brown sugar
1/4 c. chopped onion
1/2 tsp. liquid smoke (optional)
1/4 tsp. garlic powder

In a bowl, combine the first 8 ingredients. Crumble beef over mixture and mix well. Shape into 1-inch balls. Place on a greased 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 in a saucepan. Bring to a boil. Reduce heat and simmer for 2 minutes, stirring frequently. Pour over meatballs.

Bake 10 to 12 minutes longer.

Yields about 4 dozen. Ready in 1 hour or less.