1 lb. beef
1/3 c. chopped onion
1 egg, beaten
1/4 c. shortening
1/2 c. fine bread crumbs
1/4 c. milk
1 tsp. salt
1/8 tsp. pepper
1 (12 oz.) jar chili sauce
1 (10 oz.) jar grape jelly

Combine the first 9 ingredients, mixing well; shape into 1 inch meatballs. Cook in hot shortening over medium heat for 10 to 15 minutes. Drain on paper towel.

Combine chili sauce and grape jelly in medium saucepan; stir well. Add meatballs and simmer 30 minutes, stirring occasionally. Serve in chafing dish. Makes 5 dozen.