1. In a large bowl, combine the first six ingredients. Crumble beef over mixture and mix well. Shape into 1-in. balls. Place on a greased rack in a shallow baking pan. Bake at 400° for 15 minutes; drain.
2. Meanwhile, in a large saucepan, combine the remaining ingredients. Add meatballs. Bring to a boil. Reduce heat; cover and simmer for 30-35 minutes or until vegetables are tender. Discard bay leaf before serving. Yield: 8 servings.