Preheat oven to 350 degrees. Combine all meatball ingredients. Roll into medium-small balls and place on a cookie sheet. Place sheet in freezer for five minutes. After 5 minutes, remove meatballs from freezer and immediately dredge in unseasoned flour.
Brown meatballs in canola oil until just brown. Place into a baking dish. Combine all sauce ingredients. Pour over meatballs and bake at 350 degrees for 45 minutes. Serve with egg noodles, mashed potatoes, or crusty French bread.