Meatballs in Tomato Sauce with Fresh Basil

This is a really great recipe.  I try to use fresh herbs whenever possible, they are worth the splurge!
Serve this over pasta or with crusty Italian Rolls.  From Food and Drink Winter 2001

MEATBALLS:
500 g lean ground pork
500 g lean ground beef
500 g lean ground chicken or turkey
1 egg
1 cup fresh Italian or French bread crumbs
1/2 cup water
1/2 cup grated Parmesan or Romano cheese
2 tsp dried oregano
2 tbsp finely chopped bresh basil
1 tsp salt
1/2 tsp freshly ground black pepper

SAUCE:
2 tbsp olive oil
4 large garlic cloves, minced
2 28 oz (796 ml) cans crushed or diced tomatoes
1 large bay leaf
1 tsp dried leaf oregano
1 tsp granulated sugar
1/2 tsp salt
1/2 cup chopped fresh basil
1/4 cup finely grated Parmesan or Romano cheese
1/2 tsp freshly ground black pepper

1. Preheat oven to 450F.  Grease a large sided baking sheet or coat with cooking spray.  Combine pork, beef and chicken in a large bowl.  Add egg, bread crumbs, water, Parmesan, oregano, basil, salt and pepper.  Work mixture using your hands until thoroughly combined.  Form mixture into small balls about 1 inch in diameter.  Place slightly apart on baking sheet.  Bake in two batches if necessary.  Bake 15 minutes or until meatballs are lightly browned.
2. To make sauce, heat oil in a large pot.  Add garlic.  Saute 2 minutes or until fragrant.  Add tomatoes (including liquid), bay leaf, oregano, sugar and salt.  Bring to a boil, stirring frequently. Add meatballs plus juices from baking tray.  Reduce heat and simmer 1 to 1/2 hours or until sauce is thick.  Remove bay leaf and discard.  Cover and refrigerate for 2 to 3 days or freeze if making ahead.
3. Stir basil, Parmesan and black pepper into hot sauce.  Taste and adjust seasoning as needed.  Serve with pasta or stuff meatballs into crusty Italian Rolls.

Serves 8