Swedish Meatballs

Ingredients

• 1 lb. (85% lean) ground beef
• 1 small onion (grated)
• 3 slices bread, torn into 1” pieces
• 1 egg
• 2/3 cup milk
• 1 teaspoon salt
• Dash of nutmeg
• Pinch of sugar
• 2 tbl oil
• 2 cups boiling water
• 2 Tbl butter/margarine
• 1/4 cup flour
• 1/2 cup COLD water