Mix together the above ingredients. Form the mixture into small bite-sized meatballs.
Sauce: Get olive oil good and hot in a frying pan and fry meatballs, shaking pan over heat until they are well browned. Take them out of the pan. Fry onion and garlic until they are soft but not brown. Add all the remaining ingredients to the pan and bring to a boil. Cook over high heat, stirring steadily until liquid is reduced and sauce is thickened. Put meatballs back in pan and cover. Reduce heat and simmer for 5 minutes. This can be served immediately, but tastes better if refrigerated for a day and reheated before serving. Can also be used as a main course over noodles, but make meatballs larger. Serve with cocktail picks.