Italian Spaghetti Sauce with Meatballs

INGREDIENTS

• MEATBALLS
• 1 pound lean ground beef
• 1 cup fresh bread crumbs
• 1 tablespoon dried parsley
• 1 tablespoon grated Parmesan cheese
• 1/4 teaspoon ground black pepper
• 1/8 teaspoon garlic powder
• 1 egg, beaten
•  
• SAUCE
• 3/4 cup chopped onion
• 5 cloves garlic, minced
• 1/4 cup olive oil
• 2 (28 ounce) cans whole peeled tomatoes
• 2 teaspoons salt
• 1 teaspoon white sugar
• 1 bay leaf
• 1 (6 ounce) can tomato paste
• 3/4 teaspoon dried basil
• 1/2 teaspoon ground black pepper