In a medium bowl combine bread crumbs and milk and allow to sit until milk is absorbed. Add remaining ingredients (except butter) and blend by hand until ingredients are well combined.
Line a baking sheet with parchment paper. Using a tablespoon form meatballs; place on baking sheet. We made approx. 80 meatballs.
Melt 2 Tbl. butter in a Dutch oven over medium heat (do not allow butter to burn, adjust heat accordingly throughout browning process). Working in batches brown meatballs on all sides. Meatballs will be tender, work gently when turning. Do not cook meatballs all the way through, once browned remove back to parchment lined baking sheet.
For the sauce...
Once all meatballs have been browned, pour off all but 2 Tbl. of pan drippings. Add 4 Tbl. butter and melt over medium heat. Add flour and whisk until well blended making a roux. Slowly whisk in the beef broth, stirring constantly; scrapping bits off bottom of pan. Bring the sauce to a gentle boil then reduce the heat to low.
Add the meatballs to the sauce. We were able to fit half the meatballs in each batch. Cook meatballs covered over low heat until cooked through about 8-10 minutes. Remove meatballs to a bowl. Pour sauce through a fine mesh strainer then return to the pot. Add in sour cream and jelly and whisk over medium heat until well blended and heated through. Do not boil sauce.
To serve, spoon meatballs over noodles or rice. Ladle sauce over top. Sprinkle with fresh chopped parsley.