In a large skillet, saute` onion in 2 tablespoons butter until golden. Meanwhile in a large mixing bowl beat egg; add milk and bread crumbs. Let stand 5 minutes. Add salt, sugar, allspice, nutmeg, ground chuck, pork and cooked onion. Blend well with a fork.
In same skillet, heat 2 tablespoons butter. Form meat into small balls. Drop some in skillet, and brown on all sides; remove to warm casserole; until meatballs are browned. Remove.
Stir in flour, sugar, salt and pepper into fat left in skillet; add water and cream slowly; stir until thickened. If desired pour gravy in casserole with meatballs and heat thoroughly.
Place meatballs in gravy in a chafing dish to serve as an appetizer. Pour meatballs and gravy over hot cooked noodles to serve as a main dish.