In a large bowl, soak the bread in hot milk until absorbed, completely. Add all remaining ingredients; mix well. Shape into 1 inch balls. Brown meatballs in a large non stick skillet, add a little oil if necessary to keep meatballs from sicking to the pan.
Drain; place meatballs in a large casserole dish. Preheat over to 350 degrees.
to make the Gravy: melt 4 tbsp of butter in a medium saucepan. Stir in 4 Tbsp all purpose flour. Mix 2 tsp beef bouillon base into 2 1/2 c boiling water, mix into flour mixture. Cook and stir until thickened. Pour over the meatballs and bake for 30 minutes. Serve over hot cooked rice or cooked egg noodles.