Swedish Meatballs with Cream Sauce

taken from Mel's Kitchen Cafe

1 egg lightly beaten
1/4 c. milk
2 T ketchup
1 t. Worcestershire sauce
3/4 c. quick oats
1/4 c. finely chopped onion
1/4 c. minced fresh parsley (I used a T of dried)
1 t. salt
1/4 tsp pepper
1 1/2 lb lean ground beef
3 T flour

2 T butter
3 1/2 T flour
1/4 tsp thyme
1/4 tsp salt
1/8 tsp pepper
1 can chicken broth
2/3 c. milk

Combine meatball ingredients except beef and flour.  Add beef and gently mix.  Shape in balls and roll in flour shaking off excess.  Place on cookie sheet and bake at 400 degrees for 10 min.  Turn meatballs and bake 8-10 min longer.
For the sauce melt butter then stir in flour and seasonings.  Gradually add broth and milk and bring to a boil.  Cook and stir for 2 min until slightly thickened.  Serve with meatballs.