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Soak bread crumbs in milk. Chop onion fine and cook in 1 Tablespoon butter until slightly brown.
Add meat, onion, egg and seasoning to bread crumb mixture. Mix well. Form meat balls by scooping up some meat on a teaspoon which has been dipped in hot fat. (Most Swedish cooks do this so meat slips off spoon easily.)
Brown meat. Shake skillet to brown evenly on all sides.
When all meatballs are browned, add about 1/3 cup water and 1/3 cup sherry
to skillet. Cook very gently over low heat for about 15 minutes or until
liquid is absorbed.