This is a recipe that was made for years - the german side - was the spaetzel and Im not sure that there really is something that is called german meatballs but this was the recipe - so I guess they are german - enjoy
Begin with the German meatballs: Combine all ingredients in a large mixing bowl and shape into about 24 (1 1/2-inch round) meatballs. Brown the meatballs in a large skillet over medium heat, making sure to drain well as you cook the meaty mixture. Add beef broth, mushrooms, and onion. Simmer, covered, for about 30 minutes.
In a small mixing bowl, blend sour cream, flour, and caraway seed. Add to the simmering broth and meatballs.
Cook, stirring occasionally, for about 8 minutes, or until the sauce has thickened.
Meanwhile, prepare the spaetzle by sifting together the flour and salt in a large mixing bowl. Add the eggs and milk and beat well. Place in a coarse-sieved colander and sieve (pushing the batter through the holes of the colander) directly over a rapidly boiling pot of lightly salted water. Cook for about 5 minutes, drain.
Sprinkle spaetzle with a mixture of fine breadcrumbs, garlic powder and melted butter.
Place a large portion of the spaetzle on a serving platter and hollow out a well in the center. Spoon meatballs and sauce in the center of the spaetzle and serve warm.