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You're supposed to do both. You brown them in a hot skillet (with mushrooms of course), then transfer them to a pan and put them in the oven, using the scrapings from the skillet (with water or beef broth and/or juice from the can of mushrooms) that you add to the pan. Yum!
For decades I sauted in a pan before transferring them to my pan of scratch sauce simmering on another burner. Then about five years ago, I read an article written by a caterer about baking meatballs which inspired me to give it a try. I'm a convert! I have one of those broiler pans with the grate that fits on top of a pan that catches the dripping fat. That's the ticket for me. I shape the meatballs, place them on the grate and then bake (not broil) them until almost done. Then I put them in the sauce to finish and pitch all the fat that has dripped off them. I'm sure this is healthier and the meatballs are still cooked in the sauce improving its flavor. And it's MUCH less time consuming. Two pounds of ground meat makes enough meatballs to cover the top of the broiler pan I use.
I nuke mine too. Prepare the meat with bread crumbs, garlic, parm. cheese, a shake of cayenne pepper, a healthy pinch of oregano I dry in the kitchen out of my garden, a splash of milk, an egg - mush it all together, rip and shape the balls and set them in a glass baking dish. Put the dish in the microwave for 3 minutes. Take out, turn them over, put the ones from the middle on the outside, and the ones from the outside in the middle, nuke another 2 minutes. Cut each one in half, pour the sauce over the whole thing, nuke again for 2 minutes.
Done, with only one pan to clean up. And perfect every single time.
Wow, I love meatballs (equal parts beef, pork, and lamb)! I bake mine long enough to get a golden crust on the outside (about 10-15 minutes in a 400 degree oven) and then I put them in my sauce which has been cooking since early on.
Okay, it's too early to eat meatballs (I make extra so I can freeze for future dinners) so I'm going out for b-fast).
I make my meatballs and put them in the freezer for about 20-30 minutes before baking them. Half way through the baking process I add the sauce.
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