Prepare the bread mixture: Place chopped bread into a bowl. Add grated onion and mix gently. Let it sit for a minute so the bread absorbs moisture. This step keeps the meatballs soft instead of dense.
Mix the meatball base: Add beef, pork, egg, salt, pepper, nutmeg, and allspice to the bowl. Use your hands to combine gently until everything looks evenly mixed. Avoid pressing too hard so the meat stays tender.
Shape the meatballs: Roll the mixture into small, even balls. Aim for bite sized pieces so they cook evenly and stay juicy. Place them on a plate while you heat the pan.
Brown the meatballs: Heat oil in a wide skillet over medium heat. Add meatballs in batches and turn them carefully until all sides turn golden. Remove them from the pan and set aside. They finish cooking later in the sauce.
Start the sauce base: Lower the heat slightly and add butter to the same pan. Once melted, sprinkle in flour and stir constantly. Cook for about one minute until the mixture turns smooth and lightly golden.
Build the gravy: Slowly pour in beef broth while stirring. Keep mixing so no lumps form. Let the sauce simmer gently until it thickens and looks glossy.
Add cream and meatballs: Stir in heavy cream and return meatballs to the pan. Simmer gently until meatballs cook through and the sauce thickens around them. Taste and adjust seasoning if needed.