Mix all meatball ingredients in a bowl and combine well. Roll mixture into evenly sized balls.
Preheat the oven to 375°F. I prefer baking these on a greased metal cooling rack placed on top of a foil-lined baking sheet. Bake for 20-25 minutes.
To Make The Red Sauce And Finish The Dish:
While the meatballs are baking, make the homemade sauce. Heat the olive oil in a pan and sauté the onions and carrots over medium heat until tender, about 10 minutes.
Add the tomato paste, bay leaves, garlic, salt, and pepper. Cook for 1-2 minutes.
Add the crushed tomatoes and let simmer over low heat for about 1 hour. The sauce should thicken a bit.
Towards the end of the sauce's cook time, cook the spaghetti according to package instructions.
Add the meatballs to the sauce to heat through. Stir the drained and cooked pasta through the sauce and meatballs and serve.