Put the milk into a large bowl, add the oats, set aside.
Grate or mince the onion.
In a large skillet melt the butter and add the minced onion. Cook for about 3 minutes.
Add the onion, meat, egg, salt, pepper, and nutmeg to the oats and milk.
Mix everything together and then chill in the fridge for about an hour.
In the same skillet as the onion, melt 4 tablespoons of butter on medium heat.
Using two spoons, form the meat mixture into 1 inch balls and place into the skillet. Leave room around each meatball.
Cook on each side turning to the next side after about 2 minutes. Set cooked meatballs into a pan in a low-heat oven while cooking the remaining.
To make the gravy, mix 3/4 cup of cream with 1 tablespoon flour and slowly stir into the drippings of the pan. If desired, add beef broth for more liquid.