In a large bowl, combine beef, egg, onion, bread crumbs, salt and pepper. Roll into meatballs about 1 to 1 1/2 inches in size.
In a large skillet over medium heat, saute the meatballs until browned on all sides.
In a separate medium bowl, mix together the water, vinegar, ketchup, cornstarch, sugar and soy sauce. Pour over the meatballs, and allow sauce to thicken. Continue to heat until the sauce just starts to bubble.
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