In a small bowl, tear the white bread into small pieces and add milk to moisten; let stand for a few minutes. Gently squeeze out excess milk with your hands.
In a large bowl, add moistened bread and remaining meatball ingredients (except olive oil) and mix with your hands until well blended.
Shape the mixture into approx. 2-inch balls.
Heat oil in large skillet or electric fry pan. (medium high) When hot, add as many meatballs as you can without crowding and brown on all sides, but do not over cook; they will cook further in the sauce. Transfer to platter lined with paper towels to drain. Cook in two batches, if necessary.
I sometimes brown 4 or 5 Italian sausages, as well, and add them to the sauce. If you use hot sausages, they will add a little zing to the sauce. (You can brown the meatballs and sausages ahead of time and add them to the sauce when you're ready)
To make the sauce
Heat oil in large saucepot. Add onions and garlic and sauté 2 minutes or until onions are transparent. Meanwhile blend tomatoes, oregano, sugar, and salt in a blend until pureed. Add sauce to onion mixture. Bring to a boil, stirring frequently. Add meatballs..