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Step 1
Combine the lamb, breadcrumbs, egg, garlic, salt and pepper in a large bowl. Divide the mixture into 24 portions. Use wet hands to roll each portion into a ball and place on a plate. Cover with plastic wrap and place in the fridge for 15 minutes to chill.
Step 2
Meanwhile, to make the romesco sauce, heat 1 tablespoon of the oil in a non-stick frying pan over medium-low heat. Add the almonds and cook, stirring, for 3 minutes or until golden. Use a slotted spoon to transfer the almonds to a plate lined with paper towel. Add the bread to the pan and cook, stirring, for 2 minutes or until golden. Set aside for 5 minutes to cool.
Step 3
Meanwhile, use a small knife to cut a cross in the base of each tomato. Place the tomatoes in a heatproof bowl and cover with boiling water. Set aside for 5 minutes. Use a slotted spoon to transfer to a plate. Remove skin and discard. Coarsely chop.
Step 4
Place the almonds, bread, tomato, capsicum, garlic, paprika, cayenne pepper and sherry in the bowl of a food processor and process until smooth. Season with salt and pepper. Transfer to a serving bowl.
Step 5
Heat the remaining oil in a large frying pan over medium heat. Add one-third of the meatballs and cook, turning occasionally, for 10-12 minutes until golden brown and cooked through. Transfer to a plate lined with paper towel. Repeat, in 2 more batches, with the remaining meatballs, reheating the pan between batches.
Step 6
Place the meatballs in a serving dish. Serve hot or at room temperature with the romesco sauce.