Mix the meat, rice, 1/2 cup of water, the onion and the seasonings. Shape the mixture by tablespoons into 1 1/2-inch balls.
TO COOK IN A SKILLET: Heat 1 tablespoon of salad oil in a large skillet and cook the meatballs over medium heat until brown. Add remaining ingredients and heat to boiling. Reduce the heat, cover and simmer for about 45 minutes.
TO COOK IN THE OVEN: Place the meatballs in an ungreased baking dish, 8x8x2 inches. Mix the remaining ingredients and pour over the meatballs. Cover and bake in a 350 degree F. oven for about 45 minutes. Uncover and bake 15 minutes longer.