1. In large mixing bowl, combine KELLOGG'S CORN FLAKES cereal, the 2 tablespoons ketchup and egg. Mix in ground beef. Shape in 1 1/4-inch meatballs. Place in single layer, in shallow baking pan, coated with cooking spray.
2. Bake at 400° F for 12 minutes or until browned.
3. In 4-quart saucepan, combine remaining ingredients. Simmer over low heat 15 minutes, stirring frequently. Add meatballs. Continue cooking 15 minutes. Serve over rice or egg noodles, if desired.