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In a large bowl, combine bread crumbs, half-and-half, and the 1/4 cup coffee. Let stand until mixture is evenly moist.
Add eggs, onion, parsley, the 1 teaspoon salt, 1 teaspoon nutmeg, and the pepper. Add beef and turkey. Mix well. Cover and chill for 2 hours. With moistened hands, shape mixture into 72 meatballs.
In a very large skillet, melt 2 tablespoons of the butter over medium heat. Cook half of the meatballs in hot butter about 12 minutes or until done (165), carefully turning to brown evenly. With a slotted spoon, remove meatballs from skillet. Add remaining butter to skillet and repeat with remaining meatballs. Remove meatballs from skillet.
Stir flour into pan drippings until smooth. Add broth, the 1 cup coffee, 1 teaspoon nutmeg, and the 1/2 teaspoon salt. Cook and stir over medium heat until thickened and bubbly.
Return all meatballs to skillet; heat through, gently stirring occasionally.