Found this in a Taste of Home cookbook and it has been a keeper ever since then! My HubMan loves this dish!! He always says, "I don't know what it is, but this is just good stuff" LOL Serve along side a green salad and you are good to go! You can use the recipe for the meatballs here or either my Italian Meatball recipe or used the frozen ones...I personally prefer to use the Italian meatball recipe I also have listed on this site.
In a small bowl, combine the onion, bread crumbs and Parmesan cheese. Add beef and mix well. Shape into 1-in. balls; place on a rack in a shallow baking pan. Bake at 400° for 8-10 minutes or until no longer pink; drain.
Meanwhile, arrange bread in a single layer in an 9x13 baking dish. Combine the cream cheese, mayonnaise, Italian seasoning and pepper; spread over bread. Sprinkle with 1/2 cup mozzarella cheese.
In a bowl, combine the spaghetti sauce, water and add meatballs. Pour over bread. Sprinkle with remaining mozzarella. Bake, uncovered, at 350° for 25-30 minutes or until heated through.