Bernice's Swedish Meatballs

1 1/2 pound ground beef
1/3 cup chopped onions
1/2 cup cracker crumbs
1/2 cup milk
1 Tablespoon cornstarch
1 egg
1/4 teaspoon nutmeg
1 Tablespoon sugar
1 teaspoon salt
Bit of pepper
1 teaspoon chopped parsley

Mix and shape into 1 1/2 inch balls.  Roll in flour and borwn.  Remove from skillet and arrange in flat baking dish.  Cover with gravy and bake at 350 degrees for one hour

Gravy:  1 can mushroom soup, 1 can milk, 1 cup broth.