1In a bowl combine beef, grated onion, salt and pepper, nutmeg egg and breadcrumbs. form into any size ball you like, I do mine a bit smaller.
2In a large skillet big enough to hold gravy as well, add the oil, and brown the meatballs on all sides, remove and set aside, keeping all drippings.
3Add butter to the pan and melt, then add the flour and cook for a few second to make a rue. Then add the beef broth and stir until bubbling. Add milk a little at time and stir until it forms a gravy. Add salt and pepper to taste, nutmeg and onion powder.
4Return the meatballs back into the gravy, cover and let simmer for about 20 min, until meatballs are heated through. Serve with cooked egg noodles or pasta of your choice. Enjoy!