Meatballs in Mushroom Sauce

I made this yummy recipe on Saturday, to take to friends', who recently welcome a little one into their lives. Eric and I found this dish to be very good - we had it over buttered noodles. I'll definitely be making it again!

**Update** I forgot to mention where I found this recipe. It was in the most recent online issue from Women of the Harvest.

Meatballs in Mushroom Sauce

1 1/2 lb (750 g) ground beef
(1 medium onion, minced)
1/2 c. (75 g) bread crumbs
1 tsp. salt
1 tsp. Worcestershire sauce
1 egg, beaten
1/2 c. (125 ml) milk
1 tsp. sage
1/4 c. (60 ml) oil
2 cans cream of mushroom soup (* those in Austria, I used 2 packages of Steinpilzsuppe with 1 liter water...it was thicker this way).
1 c. milk
1 c. water
2 beef bouillon cubes

In a large bowl, combine the beef, onion, crumbs, salt, pepper, Worcestershire sauce, egg, milk and sage; knead mixture until well-mixed. Refrigerate 2 hours, if possible. Shape into 2-inch (5cm) meatballs. In a large, heavy skillet, brown meatballs well in hot oil. Transfer to a baking dish.

In the same heavy skillet, add the soup, milk, water, and bouillon to the meat drippings. Heat while stirring until well-blended; pour over meatballs in baking dish (you can also add fresh sliced mushrooms) and bake 1 hour at 325 degrees F (165 C). Enjoy with mashed potatoes or buttered noodles.