Preheat an oven to 350 degrees F (175 degrees C).
Mix ground beef, cracker crumbs, chopped onion, milk, eggs, and salt in a large bowl. Roll out 20 meatballs and arrange on a baking sheet with a rim. Whisk together the ketchup, water, brown sugar, and nutmeg in a bowl. Pour mixture over meatballs.
Bake in the preheated oven until the meatballs are no longer pink in the center, about 45 minutes.
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