MEATBALLS:

1 lb. ground beef
1/2 c. Italian style bread crumbs
1 egg, slightly beaten
1 tbsp. dried onion
3 tbsp. cooking oil
Salt & pepper

TOMATO SAUCE:

2 tbsp. olive oil
1 med. onion, chopped
1 clove garlic, minced
1 (28 oz.) Italian style tomatoes
1 (6 oz.) tomato paste
3/4 c. water
1 1/2 tsp. mixed Italian herbs
1 tsp. sugar
1/2 c. dry red wine
4 oz. can mushrooms

First make meat balls. Next make tomato sauce. Heat olive oil in a large saucepan. Add the onion and garlic; saute 5 minutes. Puree the tomatoes in a blender. Add to the onion mixture with the tomato paste, water, seasonings and wine. Bring to boil and reduce the heat to low. Add the browned meatballs and mushrooms. Simmer covered for 1-1 1/2 hours.