Ingredients:

  Amount  Measure       Ingredient -- Preparation Method
--------  ------------  --------------------------------
                        -----sauce-----
   2      large         yellow onions -- coarsely
                        grated
   1      large         green pepper -- coarse grated
     1/4  cup           olive oil
  16      ounces        tomato sauce
  12      ounces        tomato paste
     1/3  cup           water
   1                    garlic clove -- peeled
   1      medium        bay leaf
     1/2  teaspoon      basil
     1/2  teaspoon      oregano
   1      teaspoon      sugar
     3/4  teaspoon      salt
     1/2  teaspoon      freshly ground pepper
                        -----meatballs-----
   1      large         yellow onion -- coarse grated
   1 1/2  pounds        lean ground round
   2                    eggs -- beaten
     1/4  teaspoon      garlic salt
   1      teaspoon      salt
     1/4  teaspoon      freshly ground pepper
                        olive oil

Preparation:

SAUCE: Squeeze or strain onions; discarding juice and retaining the pulp. Sauté‚grated onion and green pepper in olive oil 10 minutes, stirring often. Transfer to cooking pan. Add remaining ingredients and mix well. Cook over low heat about 45 minutes, stirring often to prevent burning. Just before serving, remove garlic and bay leaf. MEATBALLS: Combine all ingredients except olive oil. Mix well. Form into balls. Brown in olive oil, rotating to cook on all sides. Drain on absorbent paper before adding to the sauce. Cook spaghetti according to package direction. Spoon the sauce and meatball over the spaghetti. Top with freshly grated Parmesan cheese.