Preheat oven to 375°F. Spray baking sheet with non-stick spray.
Combine all ingredients for meatballs in a medium bowl, mixing well to coat all ingredients with egg.
Using a small cookie scoop, scoop balls of meatball dough and place 1-2 inches apart on baking sheet.
Bake at 375°F for 9-11 minutes.
While meatballs are baking, combine sauce ingredients in a small saucepan over medium-low heat, stirring occasionally. If sauce begins to boil, reduce to a simmer to keep warm until meatballs are done.
Serve meatballs warm from the oven and spoon generous portions of the sauce over them.