When I was growing up my mother's side of the family would get together every Christmas Eve at my Swedish Grandmother house in NJ. My Grandma is long gone now, but whenever I make these it brings me right back to my childhood.
Mix milk and dry bread crumbs, set aside. Beat egg in bowl, add beef, pork, onion, bread crumbs (which have been mixed with dry bread crumbs), nutmeg, salt and pepper, mix thoroughly, Shape into balls 1" in diameter, roll balls in flour, in large skillet add 2 Tbls margarine and brown meatballs well on all sides, browning time about 10 minutes. Do not cook fully when browning, and brown in batches, so as not to crowd the pan.
Take Tbls flour and gradually blend in broth and cream. Stir into skillet and simmer together with meatballs until sauce is thickened and meatballs are cooked through. Serve with egg noodles, rice, or pasta.