Meatballs and Peppers

INGREDIENTS

• 1 cup thinly sliced green bell pepper
• 1 cup thinly sliced red bell pepper
• 1 cup thinly sliced yellow bell pepper
• 1 1/3 cups water
• 1 (10 1/2-ounce) can beef consomme
• 1 bay leaf
• 1 (1-ounce) slice whole-wheat bread
• 1 pound ground round
• 1 tablespoon finely chopped onion
• 1/2 teaspoon dried oregano
• 1/2 teaspoon salt
• 1/2 teaspoon freshly ground black pepper
• 1 large egg white
• 1 garlic clove, crushed
• 2 teaspoons olive oil
• 2 tablespoons all-purpose flour
• 1/4 cup water
• 1/3 cup finely chopped fresh or 1 1/2 teaspoons dried basil
• 2 teaspoons white wine vinegar