1. Preheat oven to 350 degrees F (175 degrees C). 2. Lightly grease a 9x13 inch baking dish. 3. In a large bowl, combine ground beef, chopped onion, bread crumbs, egg, and milk. Season with parsley, Worcestershire sauce, 1/2 teaspoons salt, and 1/2 teaspoon pepper and 1/2 teaspoon nutmeg.Mix well with your hands. 4. Shape into walnut-size balls, and place on baking dish. 5. Bake for 30 minutes in preheated oven. Turn frequently so they brown evenly on all sides. 6. To make the sauce: In a saucepan, combine oil, flour, paprika, 1 teaspoon salt, and 1 teaspoon pepper. 7. Cook over medium heat until bubbling. 8. Stir in hot water and sour cream until smooth and heated through. Add mushrooms. 9. When meatballs have cooked 30 minutes, pour sauce over the top, and return to the oven for 20 minutes, stirring occasionally. 10. Great served over egg noodles or rice for a complete main dish. ---------------------------------------------------------------------------
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