BARBECUED MEATBALLS

1 egg, lightly beaten
1 can (5 oz) evaporated milk
1 cup quick cooking oats
½ cup finely chopped onion
1 tsp. salt
1 tsp. chili powder
¼ tsp. garlic powder
¼ tsp. pepper
1½ lbs. ground beef

B-B-Q Sauce:

1 cup ketchup
¾ cup packed brown sugar
¼ cup chopped onion
¼ tsp. garlic
½ tsp. liquid smoke

In bowl, combine the first eight ingredients. Crumble beef over mixture and mix well. Shape into 1 inch balls; place in a greased 9 x 13 baking dish.

Bake uncovered, at 350º for 18-20 minutes or until meat is no longer pink. Meanwhile, combine the sauce ingredients in a saucepan. Bring to a boil. Reduce heat and simmer for 2 minutes, stirring frequently. Pour over meatballs. Bake 10-12 minutes longer.