Heat a non-stick heavy based frypan and cook the onion and garlic with the water until onion is soft and transparent. Remove half of onion mixture and place in bowl.
Add tomato passata sauce and sugar to remaining mixture in pan and simmer, uncovered for 15-20 minutes until slightly thickened.
Combine remaining cooled onion mixture with mince, egg, breadcrumbs and parsley, then season with salt and pepper.
Roll tablespoons of mixture into balls.
Place on a baking tray and bake at 200°C for 15 minutes or until cooked through.
Transfer meatballs and sauce to an ovenproof baking dish and sprinkle with Perfect Italiano Parmesan. Return to the oven for 15-20 minutes or until cheese has melted. Serve with crusty bread
