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Swedish Meat Balls

1 cup fine bread crumbs
1/3 cup milk
1/4 cup minced onion
1 pound ground beef
1 egg, slightly beaten
1-1/2 teaspoons salt
1/8 teaspoon pepper
1/2 teaspoon nutmeg
2 Tablespoons butter
2 teaspoons flour
1 cup hot water
1 bouillon cube
1/2 cup milk
1/2 cup light cream

Soak bread crumbs in 1/3 cup milk.
Add onion, meat, egg and seasonings. Mix thoroughly.
Shape into 1-inch balls.
Saute in butter in skillet until lightly browned on all sides.
Remove meat from skillet and add flour to fat and blend.
Add water, bouillon cube, 1/2 cup milk and cream.
Cook and stir over medium heat until sauce is smooth and thickened; about 2 minutes.
Add meat balls, cover, and simmer for 15 minutes.

Makes 6 servings.