Add the breadcrumbs and milk to a large mixing bowl and stir to combine, set aside for 5 minutes to allow the breadcrumbs to absorb the milk. Add the remaining meatball ingredients to the bowl and mix using your hands until thoroughly combined. Form the mixture into 12 meatballs roughly 1 1/2 inches in diameter. Place the meatballs spread out in a 9x13 baking dish. Bake the meatballs in the preheated oven for 15 minutes.
Stir the sauce ingredients together in a medium size saucepan over medium heat. When the sauce begins to boil reduce the heat to low and simmer, stirring occasionally, for 5 minutes. Season sauce with salt & pepper to taste.
Take the meatballs out of the oven and pour the sauce into the baking dish over the meatballs. Sprinkle the mozzarella cheese on top then cover the dish with aluminum foil and bake for 20 more minutes.