1. Soak bread in milk. Combine bread mixture, eggs, and next 3 ingredients in a bowl; stir well. Add beef. Mix well.
2. Shape beef mixture into 1-inch balls. Place on a rack in shallow broiler pan. Bake at 450 degrees F. for 10 to 15 minutes or until meatballs are done.
3. Combine ketchup and remaining ingredients in a saucepan; cook over medium heat 5 minutes or until bubbly, stirring occasionally. Add meatballs to sauce and cook 5 minutes or until thoroughly heated.