In large mixing bowl, beat eggs until foamy. Add Rice Krispies cereal, the 2 tablespoons catsup, the water, onion, dry milk, salt and pepper. Mix well. Add ground beef. Mix only until combined. Portion using level measuring-tablespoon. Shape into meatballs. Place in single layer in well-greased or foil-lined shallow baking pan. Bake in oven at 400 degrees about 12 minutes or until well browned. While meatballs are baking, prepare sauce. Measure all remaining ingredients into large saucepan. Stir to combine. Cover and cookover low heat about 15 minutes, stirring frequently. Add meatballs to sauce. Cook over low heat about 10 minutes longer. Yield: about 40 meatballs