Preheat oven to 350 degrees. In small saucepan, melt butter over med. heat. Add onion and garlic; cook and stir until tender, about 5-7 minutes.
Remove from heat and place in medium bowl. Add bread crumbs, egg, milk, salt, pepper, and terragon and mix well. Add chicken; mix gently with hands until combined.
Form into 1'' meatballs. Place on Silpat lined cookie sheet. Bake for 15-20 minutes or until meatballs are thoroughly cooked. Remove from over; use in recipes or let cool or 20 minutes.
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