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Preheat oven to 350°F. Beat egg and 1/4 cup milk in large bowl. Stir in bread crumbs, minced onions, seasoned salt, garlic powder, 1/4 teaspoon pepper and allspice. Add ground beef; mix well. With wet hands, shape into 30 (1-inch) meatballs. Arrange meatballs in 15x10x1-inch baking pan.
Bake 15 to 20 minutes or until cooked through. Drain well.
Meanwhile, melt butter in large skillet on medium-high heat. Stir in flour, bouillon granules and 1/8 teaspoon pepper. Gradually stir in 2 cups milk. Bring to boil and boil 1 minute, stirring constantly. Add meatballs to skillet; cook until heated through.