In a small saucepan, combine olive oil, basil leaves and garlic over very low heat until mixture is very fragrant and garlic turns golden brown, 10-15 minutes. Strain mixture, discarding basil and garlic; set oil aside., In a Dutch oven, combine crushed tomatoes, water, tomato paste, salt, chopped basil, pepper and reserved olive oil. Bring to a boil; remove ½ cup and set aside. Reduce heat and simmer, covered, while preparing polpette., Meanwhile, to make polpette, in a large bowl, combine all polpette ingredients and reserved 1/2 cup tomato mixture. Gently mix until combined (mixture will be loose). With wet hands, roll 1/4 cupfuls of mixture into balls. Place on a baking sheet or plate. Add raw meatballs to simmering sauce, gently shaking pan to allow for more space. Bring to a simmer; cook, covered, at least 45 minutes or up to 2 hours.