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Combine bread crumbs, onion, salt, pepper, nutmeg and 3/4 cup milk in a large mixing bowl.
Let milk soak into crumbs for a few minutes. Gently stir in ground beef until well blended; form into balls about 1 to 1 1/2 inches in diameter.
Brown meatballs in butter and oil in a large skillet; remove with a slotted spoon to a 2 1/2-quart baking dish.
Drain off all but 2 tablespoons of drippings; stir flour into drippings. Cook, stirring constantly, until bubbly.
Stir in beef broth and cream. Continue cooking, stirring constantly, until sauce thickens and boils for a minute.
Pour over Swedish meatballs in baking dish. Bake Swedish meatballs at 325° for 35 to 45 minutes.
Notes: This is the short-cut version of the real Swedish Meatballs, but still delicious!
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