Heat oven to 450° F. Lightly oil 9x13-inch casserole. Mix crumbs and milk in large bowl. Let soften 2 minutes.
Add eggs, meat, tomato sauce, salt, oregano, basil, nutmeg and pepper. Shape into meatballs 1/4 cup each Place in casserole and brush with oil.
Bake 450° F for 25 minutes or until browned.
Pour off fat. Mix broth, tomatoes and tomato paste. Add to casserole. Bake, covered, 1 hour at 450° F. Remove meatballs to platter.
Pour braising liquid into saucepan. Stir together cornstarch and 3 Tbsp water in small bowl.
Whisk into braising liquid. Bring to boil over medium heat, whisking, until thickened, about 1 minute. Combine meatballs and thickened liquid in casserole.
Servings: 4