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Meanwhile, heat olive oil in a large nonstick
skillet over medium-high heat. Add onion and
mushrooms and cook 6 to 7 minutes, stirring
occasionally or until lightly browned. Sprinkle
flour over the mixture, stir and cook 1 minute.
Gradually stir in beef broth until the flour is
completely incorporated into the liquid. Bring to
a simmer. Stir in the remaining 1/2 teaspoon
Italian seasoning, 1/4 teaspoon pepper and the
nutmeg.
Add meatballs to the skillet and reduce heat to
medium-low. Cover and simmer for 10 minutes,
stirring occasionally. Serve with buttered egg
noodles
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