Step 1

Preheat oven to 350 degrees. Spray a 9 X 13 inch baking dish with nonstick cooking spray.

Step 2

In a medium mixing bowl, add bread crumbs and milk. Allow breadcrumbs to sit and absorb the milk, about 8 minutes. Add beef, egg, salt, pepper, garlic powder, chili powder, and onion. Mix until ingredients are evenly incorporated. Form into 1  1/2 inches balls and arrange in a single layer in the prepared baking dish.

Step 3

In a small mixing bowl, combine ketchup, brown sugar, onion, vinegar, and liquid smoke. Pour evenly over top of the meatballs.

Step 4

Bake uncovered in the preheated heated oven, for about 1 hour, or until the internal temperature of meatball reaches 160 degrees.