Cranberry-Sauerkraut Meatballs

Source: 1994 Eagle River, Wisconsin Cranberry Festival Bake-off Winning Recipe -
Northern Wisconsin Tourism, Travel & Outdoors Web Site

2 pounds ground beef
1/2 cup water
2 eggs
1 cup finely crushed cracker crumbs
1 envelope regular onion soup mix

Sauce:
1 (16 ounce) can sauerkraut, drained and snipped
2 cups water
1 (8 ounce) can cranberry sauce (whole or strained)
1/3 cup brown sugar, firmly packed
3/4 cup chili sauce or ketchup

Mix together ground beef, water, eggs, cracker crumbs and onion soup mix. Shape into meatballs. Brown in a skillet.

Mix sauerkraut, water, cranberry sauce, brown sugar and chili sauce together.

Pour half of the sauce into a 9 x 13-inch baking dish. Arrange meatballs on sauce. Pour remaining sauce over meatballs. Cover with foil and bake for one hour at 325 degrees F. Remove foil. Bake another 30 to 40 minutes.

Serve hot over noodles or rice.