Mix first nine ingredients and shape into 1" balls.
Cook meatballs in the shortening until brown. Remove meatballs and drain fat. Heat chili sauce and jelly in skillet stirring constantly until jelly is melted. Return meatballs to pan and coat with sauce. Simmer uncovered for 30 minutes.
Note: I usually start the chili sauce and grape jelly in the crockpot and add the meatballs when they are done. I cook on low for about an hour.
Tip: If you don't have time to make the meatballs from scratch, you can use ones from the store. Cocktail franks can also be used with this sauce.