Porcupine Meatballs

This recipe is from my mother-in-law Jo White.

Porcupine Meatballs

Meatballs:
1 lb. hamburger
⅓ cup rice
1 small onion, chopped
1 egg, beaten
2 tbsp. chili powder
1 tsp. salt
dash of pepper
Sauce:
1 can tomato soup
2 soup cans water
1 tsp. salt
1 tbsp. chili powder

Combine sauce ingredients in a large saucepan and bring to a boil. While waiting for the sauce to boil combine meatball ingredients in a large bowl and mix together thoroughly. Roll into balls the size of a walnut. Drop meatballs into boiling sauce and cook on low heat uncovered for 1 hour. Stir occasionally. Serve with mashed potatoes or rice.