1 1/2 cups soft bread crumbs, about 3 slices bread
1 tablespoon dried minced onion or 1/4 cup finely chopped onion
1 1/2 teaspoons salt
1/4 teaspoon pepper
1/4 teaspoon nutmeg
3/4 cup milk
2 pounds ground beef
2 tablespoons butter
2 tablespoons vegetable oil
2 tablespoons flour
1 can (10 1/2 ounces) condensed beef broth
1 cup half-and-half or light cream
In a large mixing bowl combine bread crumbs, onion, salt, pepper, nutmeg and 3/4 cup milk. Let milk soak into crumbs for a few minutes. Gently stir in ground beef until well blended; form into balls about 1 to 1 1/2 inches in diameter.
In a large skillet, heat oil and butter. Brown meatballs in butter and oil. Remove with a slotted spoon to a 2 1/2-quart baking dish.
Drain off all but 2 tablespoons of drippings from the skillet; stir flour into drippings. Cook, stirring constantly, until bubbly. Stir in beef broth and cream. Continue cooking, stirring constantly, until sauce thickens and boils for a minute. Pour over Swedish meatballs in baking dish. Bake Swedish meatballs at 325° for 35 to 45 minutes. Serve over buttered egg noodles.