In a small bowl, soak the bread in the milk until soft.
In a large bowl, combine all the meatball ingredients except the butter and oil, and add the soaked bread.
Mix thoroughly until smooth, it's best to use your hands for this.
Shape into small, golf-ball size meatballs (by dipping your hands in cold water, the meatballs won't stick to your hands.)
Heat butter and oil in a large, deep skillet over medium-high heat.
Add the meatballs, about 8 to 10 at a time, and gently brown on all sides, about 5 to 7 minutes.
Shake the skillet now and then so meatballs stay round and brown evenly.
Place them on a heated baking pan in a low oven to keep warm.
To make gravy, deglaze the skillet with 1 cup of the stock, letting it simmer for 5 minutes while scraping the bottom of the skillet with a spatula. Strain the gravy into a clean saucepan and add the remaining 1 cup of stock. In a small bowl, mix the flour with 1/4 cup of cold water until smooth. Whisk flour mixture into warm gravy, and let simmer, whisking constantly to prevent lumps, until thickened slightly, about 3-5 minutes. Add the cream and season with salt and pepper.