Mix first 9 ingredients. Shape into 1-inch balls. Place on ungreased cookie sheet (with sides). Bake, uncovered, at 350° until light brown, about 20 minutes.
Remove meatballs to serving dish; keep warm. Place 3 tsp. pan drippings in saucepan; stir in flour. Cook over low heat, stirring constantly, until mixture is smooth and bubbly. Remove from heat. Stir in water, cream, bouillon, and ½ tsp. salt. Pour gravy over meatballs; sprinkle with parsley, if desired. Serve over hot cooked noodles or rice.
NOTE: This makes a lot of meatballs, and since there are only 3 of us, I cook, cool and freeze half. To use, I make a gravy out of butter or oil, water, half-and-half, and bouillon granuals in the same proportions as given above.