Preheat the oven to 350°F (180°C). Line a baking sheet with foil.
In a large bowl, mix together the ground beef, seasoning mix, and egg until well combined. Let sit for 5 minutes.
In a separate large bowl, mix together the sauce mix and water. Cover the bowl and place in the refrigerator until ready to use.
Shape the ground beef mixture into 1-inch round meatballs and place on the prepared baking sheet. Bake the meatballs for 15 minutes.
Remove the sauce from the refrigerator, uncover, and give it a quick stir. Remove the meatballs from the oven and, using tongs, transfer into the bowl with the sauce. Toss until the meatballs are coated, then return to the baking sheet.
Return the meatballs to the oven for 5–8 minutes, or until the internal temperature reaches at least 165°F (75°C).
Serve the meatballs with toothpicks and garnish with parsley.