MEATBALLS IN SPANISH RICE

Meatballs in Spanish Rice

1 pound ground beef
1/4 cup dry bread crumbs
1/4 cup milk
1 tsp salt
1 Tbsp. Oil
1/4 cup chopped green pepper
1 onion, chopped
3/4 cup uncooked rice
1 can (1 lb 13 ounnces) diced tomatoes
1 ½ tsp. Salt
1 tsp chili powder
1 small bay leaf, crumbled

Combine beef, bread crumbs, milk and 1 tsp. Salt. Shape into 20 balls (ping pong ball size). In large skillet, brown meatballs in oil. Reserve meatballs and drain off excess drippings. Stir in onion, green pepper and rice. Cook, stirring constantly until onion is clear and rice is lightly browned. About 8 minutes. Add remaining ingredients and meatballs. Stir to blend. Cover with a lid and cook over low heat until rice is done. About 35 minutes.
6 Servings.