Meatballs and Gravy

    1 1/2 lbs. lean ground beef
    1/2 lb. ground pork
    2 slices white bread, soaked in water and squeezed dry
    1/2 cup minced onions
    3 tablespoons chopped fresh parsley or 1 tablespoon dried parsley
    1 large egg, beaten
    3/4 teaspoon salt
    1/2 teaspoon fresh ground pepper, divided
    1 pinch nutmeg
    3 teaspoons vegetable oil, divided
    1 (14 1/2 ounce) can beef broth
    1 (14 1/2 ounce) can chicken broth
    1/4 cup water
    2 tablespoons cornstarch
    1/4 teaspoon fresh grated lemon rind
    1/4 teaspoon dried thyme

Combine ground beef, pork, bread, onion, parsley, egg, salt, 1/4
teaspoon pepper and the pinch of nutmeg in medium bowl. Shape mixture
into 1 inch balls. Heat 1 1/2 teaspoons oil in large skillet over
medium heat. Add half of the meatballs and cook until browned, about
6 to 8 minutes; drain oil. Transfer meatballs to paper towel lined
plate. Repeat with remaining 1/12 teaspoon oil and meatballs. Add
beef and chicken broths to skillet, return meatballs to skillet.
Bring to a boil; reduce heat, cover and simmer, 30 minutes.

In a small bowl combine water and cornstarch, stir well to make a
slurry. Add to meatballs and broth. Bring to a gentle boil to
thicken. Add remaining pepper, grated lemon peel and thyme. Cook
slowly 5 minutes longer. Serve over mashed potatoes, buttered
noodles, or steamed white rice.