Place the bread in a bowl and cover with water. Allow the bread to soak in the water for about 10 minutes. Ring as much of the water out of the bread as you can then tear into small pieces and place in a large mixing bowl, discard the water.
Add the pork, beef, onion, egg, salt, and pepper to the bowl with the bread. Mix thoroughly and form the mixture into meatballs about 2-inches in diameter (you should end up with about 12 meatballs).
START THE BROTH:
Add the broth ingredients to a dutch oven and bring to a slight boil over medium-high heat.
Gently add the meatballs to the broth. Reduce heat to medium and simmer the meatballs, gently stirring occasionally, until cooked through, about 20 minutes.
Using a slotted spoon gently transfer the meatballs to a plate and set aside. Strain the broth to remove the onion, bay leaf, and peppercorns. Reserve the strained broth in a separate pan and set aside for later.
MAKE THE SAUCE:
Wipe out the dutch oven and place back on the stove over medium heat. Melt the butter in the dutch oven then stir in the flour until well combined.
Add the lemon juice, capers, and 3 cups of the reserved broth to the pan. Simmer until thickened, about 5 minutes.
Stir in the sour cream and season with salt and pepper to taste. Add the meatballs to the sauce and simmer until heated through.
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