Combine the MEATBALL ingredients (ground beef, egg, breadcrumbs, mustard, garlic powder, onion powder, and salt) in a large mixing bowl until well combined.
Form the beef mixture into balls roughly 1-inch in diameter.
Heat the 1 TBSP of olive oil in a large pan over medium-high heat.
Cook the meatballs, stirring occasionally, in the pan until well browned all over, about 4 minutes.
Transfer the meatballs (the meatballs wont be cooked through yet) to a plate and set aside.
Keep any leftover fat in the pan then add the butter, mushrooms, and onion to the pan and cook over medium-high, stirring occasionally, until the onions have softened, about 6 minutes.
Stir in the flour until well combined.
Add the water and 1/2 tsp salt and cook, stirring occasionally, until the gravy begins to boil.
Stir in the meatballs and then reduce the heat to medium-low and continue to cook, stirring occasionally, until meatballs are cooked through and the gravy has thickened, about 10 to 15 minutes.
Take the pan off the heat then season the gravy with salt & pepper to taste.
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