Bavarian Meatball Stew

1 egg, lightly beaten
1/2 cup soft bread crumbs
3 tablespoons dried parsley flakes
1/4 teaspoon ground allspice
1/4 teaspoon ground nutmeg
1/4 teaspoon pepper
1-1/2 pounds ground beef
2 cans (14-1/2 ounces each) beef broth
1 can (14-1/2 ounces) diced tomatoes, undrained
1 can (14 ounces) sauerkraut, rinsed and well drained
2 medium potatoes, peeled and cubed
2 medium carrots, sliced
2 celery ribs, sliced
1 envelope onion soup mix
1 tablespoon sugar
1/2 teaspoon pepper
1 bay leaf

In a large bowl, combine the first six ingredients. Crumble beef over mixture and mix well. Shape into 1-in. balls. Place on a greased rack in a shallow baking pan. Bake at 400° for 15 minutes; drain.

Meanwhile, in a large saucepan, combine the remaining ingredients. Add meatballs. Bring to a boil. Reduce heat; cover and simmer for 30-35 minutes or until vegetables are tender. Discard bay leaf before serving. Makes 8 servings.