COMBINE the breadcrumbs and milk in a large bowl and stand for 10 minutes. Add the pork, bacon, cheese, parsley and eggs and mix to combine. Shape tablespoonfuls into meatballs (making approximately 40), then cover and chill for 30 minutes or until firmed
HEAT the oil in a large saucepan and gently cook the shallots for 3-4 minutes. Add the mushrooms and saute for 5-10 minutes or until softened. Add the balsamic vinegar, then the PHILLY, nutmeg and seasonings and simmer for 3-4 minutes. Keep warm
HEAT the extra oil in a non-stick frying pan over moderate heat and cook the meatballs for 8 minutes or until cooked through. Serve immediately with pasta and mushroom sauce