Beat egg in bowl with spoon. Mix in next 6 ingredients in order given. Shape into 25 balls.
Brown meatballs in cooking oil in frying pan. Pile into 2 quart (2 L) casserole.
Mix soup and remaining milk together. Pour over meatballs. Bake covered in 350°F oven for about 1 hour.
PORCUPINES: Add 1/4 cup long grain rice to meat mixture. Shape into at least 25 balls. Place in single layer in pan allowing room for expansion. Combine soup with 1 1/4 cups water. Pour over top. Cover. Bake in 350 F oven for 1 hour or until rice is cooked. Serves 4 to 5.