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Bring water, tomato sauce and Sauce Mix to boil in 3-quart saucepan, stirring occasionally.
Carefully add meatballs. Reduce heat to low; simmer 15 minutes or until meatballs are cooked through (or heated through if using frozen meatballs), stirring occasionally.
Serve meatballs and sauce with cooked rice and warm corn tortillas, if desired.