Spanish Meatballs (Albóndigas con tomate)

Ingredients

• 1 lb (450g) ground beef or a mix of beef and pork
• 1/4 cup milk
• 1 egg
• 2 garlic cloves, minced
• 1 teaspoon paprika
• 1 teaspoon cumin
• Salt
• pepper
• Olive oil for frying
• 1 can (14 oz or 400g) crushed tomatoes
• 1 onion, finely chopped
• 1 teaspoon sugar (to balance acidity)
• 1/2 teaspoon smoked paprika
• 1 bay leaf
• Olive oil