Break bread up into small pieces. Put in bowl and cover with milk.
In a large bowl combine rest of ingredients. After bread has absorbed milk, squeeze milk out of bread and add bread to meat mixture and combine. Mixture should feel very wet but you are able to form into meatballs. If mixture feels dry, add milk from bread to mixture.
Place on a baking sheet sprayed with Pam and bake in a oven till they are light golden brown (this helps them not break apart when you put them in your gravy to finish cooking them).