Combine beef, crumbs, onions, cornstarch, salt, nutmeg, egg and cream.
Shape into small balls; roll in flour.
Brown meatballs in hot fat in skillet.
Combine Burgundy, bouillon cubes, sugar and 11/2 cups water in saucepan; simmer, stirring constantly, until smooth and blended.
Add meatballs to sauce; simmer for 30 minutes.