Combine above ingredients in pan to which oil has been added. Brown slowly for ½ hour or more. Then add tomatoes and sugar and cook for 1 hour. Then add tomato paste and water. Cook 3 hours real slow uncovered.Directions for Italian Meat Balls: Soak bread in water 2 to 3 minutes. then squeeze out moisture. Combine soaked bread with remaining ingredients, mixing well. Form in small balls (about 20). Brown slowly in 2 TBSP hot olive oil. Add to sauce, cook 30 minutes.