Swedish Meatballs

4 pieces firm white bread, cubed
1 1/2 cups milk
1 large egg, beaten
1 lb. lean ground beef
1/4 cup diced/minced onion
1 teaspoon salt
¼ teaspoon nutmeg
¼ teaspoon pepper
1 package brown gravy
1 package country gravy

Heat oven to 350 degrees. In a large bowl, combine bread, ½ cup milk, and the egg. Let soak 5 minutes. Mash bread mixture with a fork and add all remaining ingredients except the gravy. Mix together and form mini meatballs. Place in a 9 x 13 inch baking dish and bake for 20 minutes, turning once after 10 minutes. Meanwhile, in a saucepan, prepare gravy mixes using 1 cup of milk and 1 cup of water. Bring to a boil, reduce heat and simmer. Serve meatballs over rice, egg noodles, or with mashed potatoes. Add the gravy on top. Add a spoonful of Lignonberry Jam (IKEA)on the side. Whole berry cranberry sauce is good too.