Preparation
Preheat oven to 350
Combine all ingredients and shape into 2-inch rounds. Place in a baking dish and bake for 20-25 minutes until cooked through. Combine all sauce ingredients except the cornstarch or arrowroot powder and water in a medium saucepan. Cook over medium heat until smooth, about 5-6 minutes.
Mix together the cornstarch or arrowroot powder and the water. Add to the saucepan and cook about 1-2 more minutes until thickened. Remove the meatballs from the dish and serve with the sauce.