Step 1

Preheat oven to 350 degrees F (175 degrees C).

Step 2

In a large bowl, combine ground beef, bread crumbs, chili sauce, egg, salt, and freshly ground black pepper; mix well. Shape into an 8x4 inch loaf pan.

Step 3

Place loaf pan on a rack in an oven-roasting pan. Bake for 1 hour, or until done. Cook until internal temperature measures 160 degrees F (70 degrees C); the meat should be well done, with no trace of pink. Remove from oven, and allow to rest for 10 minutes before serving.

Step 4

While the meatloaf is resting, prepare the gravy. In a medium saucepan, melt butter or margarine over medium heat. Add mushrooms and onions; cook and stir until tender. Add beef broth; simmer for 5 minutes, stirring occasionally. Combine water and cornstarch in a small cup; stir into broth. Cook and stir for 1 minute, or until thickened.