In a small bowl soak the bread in the milk for about 5 minutes, then squeeze out moisture and crumple into small bits.
In a medium bowl combine the bread with ground beef, eggs, parmesan and spices gently mix to combine well (I use my clean hands, its the best way to do it). Form into small balls ( I form the meatballs into the size of a golf ball). In a medium frying pan on medium heat, add the olive oil and the meatballs, brown them on all sides.
FOR THE SAUCE
While meatballs are browning, in a separate, large deep pan add the olive oil, the tomato puree (or peeled tomatoes), spices and water, stir until well combined. Add the browned meatballs. Over medium heat, heat to boiling, then lower heat to medium low and simmer for approximately 20 minutes (covered), then raise the heat to medium, (leave pan slightly uncovered 1/3 uncovered) and cook an additional 20 minutes, until sauce has thickened and meatballs are cooked through. Serve immediately, top with freshly grated parmesan cheese if desired. Don't forget some crusty Italian bread to soak up the delicious sauce. Enjoy!
**If you decide to bake the meatballs, shred approximately 1/3 cup of firm mozzarella on top and bake in the oven until melted, make sure you use an oven safe frying pan.