Barbequed Meatballs

Rachel won't let it go, so here's a recipe. I tried her cream sauce meatballs and unfortunately I had these to compare to so... I guess you could say "I've had better!"

1 egg, lightly beaten
1 can evaporated milk (5 ounces)
1 cup quick-cooking oats
1/2 cup finely chopped onion
1 tsp. salt
1 tsp. chili powder
1/2 tsp. garlic powder
1/2 tsp. pepper
1-1/2 lbs grounds beef

Sauce:
1 cup ketchup
3/4 cup packed brown sugar
1/4 cup chopped onion
1/2 tsp. liquid smoke, optional
1/4 tsp. garlic powder

In a bowl, combine the first eight ingredients. Crumble beef over mixture and mix well. Shape into 1-inch balls; place in a greased baking dish. Bake, uncovered, at 350 for 18-20 minutes or until meat is no longer pink. Meanwhile, combine the sauce ingredients in a saucepan. Bring to a boil. Reduce heat and simmer for 2 minutes, stirring frequently. Pour over meatballs. Bake 10-12 minutes longer.

I serve it on egg noodles.