German Meatballs with Buttermilk Gravy

On Sunday evening I browsed the many cookbooks that I brought back with me from Germany and made a list of recipes that I want to make . . . . so I will hopefully be posting more German recipes here within the next few weeks/months. I love German food! It is VERY hearty. I especially love the Knoedls and Kloese that accompany so many meals. I am definitely going to be making some in the near future.
German Meatballs with Buttermilk Gravy
Recipe by: Emily
2 lbs Lean Ground Beef
1 Egg
1/4 cup Milk
1/3 cup FRESH Bread Crumbs
1 Small Onion, diced small
2 tsp Spicy Brown Mustard or Regular Yellow Mustard
1 tsp Salt
1/2 tsp Black Pepper
1 Tbsp Vegetable or Canola Oil
1 Medium Onion, thinly sliced
2 Tbsp Olive Oil
1/4 cup Flour
2 cups Buttermilk
1 tsp Brown sugar
2 Tbsp Butter

1. Heat a large skillet over medium high heat, add 2 tablespoons of olive oil and 1 tablespoon of butter to the pan, melt together. Add the 1 teaspoon of light brown sugar to the melted butter/oil, add the chopped onion and cook for 5 minutes stirring occasionally until onions begin to brown. Lower heat to medium low and continue to cook onion stirring occasionally until softened and caramelized, about 15-20 minutes.
2. While the onions cook, mix the egg, bread crumbs, milk, salt, pepper, and mustard together in a bowl. In a medium bowl add the ground beef, diced onion and bread crumb mixture together. Mix gentle until the onions and bread crumbs are evenly incorporated. Shape into walnut sized meatballs. After the onions are caramelized add 1-2 tablespoons of water to the onions to deglaze the pan. Remove the onions from the skillet and set aside. Add 1 -2 tablespoons of oil to the skillet and fry the meatballs on each side over medium heat until browned.
3. Remove meatballs from the skillet and add 2 tablespoons of butter to the skillet, add the flour and cook for 1 minute. Whisk the buttermilk into the flour, continue whisking until the gravy is smooth. Taste gravy and season with salt and pepper if needed. Add the caramelized onions and meatballs back to the skillet and allow to simmer for 2-3 minutes or until the gravy has thickened. Serve over hot spaetzle noodles. Enjoy!