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Mix ground beef, bread crumbs, onion, milk, parsley, pepper and egg. Shape into 1-inch balls and brown in hot oil. Remove meatballs from skillet.
In same skillet, on low heat, stir in chilies, cheese, seasoning mix and 3/4 c. water. Simmer until cheese is melted, stirring constantly.
Return meatballs to mixture in skillet. Cover and simmer until completely heated throughout.
Serve immediately with hot corn bread.
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