1 pkg. onion soup mix
1/2 c. water
2 eggs
2 lb. ground beef
1 (16 oz.) can sauerkraut, drained and snipped
1 (8 oz.) can whole cranberry sauce
1/3 c. packed brown sugar
1/2 c. chili sauce
Hot cooked rice

Mix onion soup mix and water in a bowl. Beat in eggs, then add beef and mix well. Shape into 40 meatballs.

Combine sauerkraut, cranberry sauce, chili sauce, 3/4 cup water and brown sugar. Pour half of the mixture into bottom of 9x13x2 inch baking dish. Set remaining mixture aside.

Quickly brown meatballs in a 10-inch skillet about 1/3 at a time. Remove meatballs, drain fat and arrange on top of sauerkraut in baking dish. Pour remaining sauerkraut mixture over meatballs, cover with foil and bake at 325 degrees for 20 minutes. Uncover and bake 15-20 minutes longer. Serve over hot cooked rice. Makes 10 servings.