Step 1: Prepare the Meatballs

1. Mix the Ingredients:
   In a large mixing bowl, combine ground beef, breadcrumbs, milk, egg, onion, garlic, Worcestershire sauce, salt, and pepper. Mix until well combined.
2. Form the Meatballs:
   Shape the mixture into 1-inch meatballs and place them on a plate or tray.

Step 2: Cook the Meatballs

1. Brown the Meatballs:
   Heat 1 tablespoon of olive oil in a large skillet over medium heat. Add the meatballs in batches and cook until browned on all sides. Remove and set aside.

Step 3: Make the Mushroom Gravy

1. Sauté the Mushrooms:
   In the same skillet, add another tablespoon of olive oil. Sauté the sliced mushrooms until they are golden and tender.
2. Create the Gravy Base:
   Sprinkle the flour over the mushrooms and stir well to coat. Gradually whisk in the beef broth and water, ensuring there are no lumps.
3. Simmer the Gravy:
   Bring the mixture to a gentle simmer, stirring frequently, until the gravy thickens.

Step 4: Combine and Simmer

1. Add the Meatballs:
   Return the browned meatballs to the skillet. Stir gently to coat them with the gravy.
2. Cook Until Done:
   Let the meatballs simmer in the gravy for 10–12 minutes, or until fully cooked through.