Begin by combining the ground beef, bread crumbs, eggs and 1/2 cup of the sauce in a medium bowl; shape into 18 meatballs.
Next, in a 12" skillet over medium high heat, add the olive oil and once it is hot, saute the garlic, onion and bell pepper until the onion turns clear.
Add in the remaining sauce, Italian Seasoning, bay leaf, basil, and pinch of sugar. Stir well and bring to a boil over medium-high heat.
Gently stir in the uncooked meatballs. Reduce heat to low and simmer covered, stirring occasionally, 20 minutes or until meatballs are done.
Serve over hot spaghetti, sprinkle with freshly grated Parmesan cheese, and enjoy!