Italian Meatballs

1 lb lean ground beef

1 medium onion, chopped (1/2 cup)

1/3 cup bread crumbs

1/4 cup milk

1 egg

1 tsp salt

1/8 tsp pepper

1 cup chili sauce

1/2 cup cold water

1 jar tomato pasta sauce

1 tsp yellow mustard

Heat oven to 400.

Mix ground beef, onion, bread crumbs, milk, egg, salt and pepper.  Shape mixture into 30 1 inch balls.  Place in ungreased rectangular pan, 13x9x2 inches.

Bake uncovered, about 15 minutes or until no longer pink in center and juices run clear.

Mix chili sauce, water, pasta sauce, and mustard in 2 quart saucepan.  Add meatballs.  Heat to boiling, stirring occasionally; reduce heat.  Cover and simmer about 20 minutes until meatballs are hot.