Peel onions and garlic and cut into fine cubes. Wash parsley, shake dry. Pluck the leaves from the stems and chop them, except for a little bit for garnishing. Knead minced meat, half of the onions, garlic, egg, breadcrumbs, milk, parsley and 1 tbsp. tomato paste.
Season with salt, sambal oelek, 1 pinch each of cumin and coriander and some nutmeg. Shape into 24 meatballs. Heat 2 tablespoons of oil in a frying pan. Fry the meatballs for 6-10 minutes.
For the tomato sauce, wash, clean and dice the tomatoes. Heat 1 tablespoon of oil. Fry the onions until transparent, turning them over. Stir in 1 tbsp. tomato paste, add tomatoes and sherry. Wash and clean the chilli and cut into fine rings.
Boil up the tomatoes and season with salt, chilli and sugar. Simmer sauce for 5-10 minutes. Arrange sauce and balls in clay bowls. Garnish with parsley.