1. Meatballs: In medium bowl, combine all ingredients; toss lightly to mix well. With teaspoon, shape mixture into 30 balls, each 3/4 inch in diameter.
2. Sauce: In hot oil in large, heavy skillet, brown meatballs; remove. Add onions, garlic; sauté 5 minutes.
3. Add rest of sauce ingredients, with 1/2 cup water and meatballs; stir to mix. Bring to boiling; reduce heat; simmer, uncovered, 1 1/2 hours, stirring occasionally.
4. Heat oven to 350F. Grease 13-by-9-by-2-inch baking dish. Cook lasagna as ]Label directs. Drain; rinse in water.
5. In baking dish, layer half the ingredients: Lasagna, mozzarella, ricotta, tomato sauce with meatballs, Parmesan cheese. Repeat. Bake 30 to 35 minutes. Makes 6 servings.
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