- Heat oven to 350°F.
- Combine egg, bread crumbs, ¼ cup of the onion, and the oregano in a large mixing bowl. Add the ground meat and mix well.
- Shape into 42 meatballs about ¾-inch in diameter.
- Arrange in a single layer in a 15x10x1-inch baking pan.
- Bake for 12 to 15 minutes, or until internal temperature is at least 160°F. Drain well.
- Meanwhile, cook remaining ¼ cup onion and the green pepper in hot oil in a large saucepan until vegetables are tender.
- Stir in tomato sauce, brown sugar, mustard, chili powder, black pepper, garlic salt, and if desired, hot pepper sauce. Bring to boiling.
- Add meatballs to sauce. Reduce heat and simmer, uncovered, for 5 minutes.