In a large Dutch oven or stew pot, heat the olive oil. Add the onions and garlic and sauté on low for about 10 minutes to caramelize.
Add the crushed tomatoes, wine, tomato paste, water, paprika, oregano, pepper, sugar and salt. Bring to a simmer, then turn down to your lowest heat. Simmer partially covered for about 1 hour.
Make the meatballs.
In a large bowl place the beef, chorizo, parsley, garlic, onion, grated cheese, salt and pepper.
In a small bowl beat the egg and add the milk and breadcrumbs. Stir to combine and pour over the meat mixture.
With very clean hands, gently combine the meat mixture until you see the chorizo and beef have blended well with the other ingredients.
When the sauce has cooked for 1 hour, make the meatballs with your hands into 1" balls and gently place in the sauce. Move the balls around gently so that they are all coated and covered with the sauce. Add a little water if needed to cover.
Simmer the meatballs for 1 hour.
I like these served with saffron rice to be more Spanish, but they also work well with polenta or pasta.
Recipe by Jane O'Riordan
Terre Rouge and Easton Wines