2 cans chopped tomatoes
2 sm. cans tomato paste
2 c. water
1 pkg. pepperoni
2 tbsp. sugar
1 tbsp. oregano

Mix in large pot, bring to a boil. Reduce heat, simmer 3 hours, stirring occasionally.

MEATBALLS:

2 lb. lean ground beef
2 eggs
Garlic to taste
Crushed red pepper to taste
1/2 c. Parmesan cheese
1 1/2 c. bread crumbs
3 tbsp. parsley flakes
Salt & pepper to taste

Mix all ingredients together. Form into meatballs. Brown in pan or place on baking pan and bake 10-15 minutes until done. Add to sauce and simmer about 30 minutes. Serve over hot spaghetti.