Remove the crust from the bread. Roughly tear the bread into chunks. Add the milk to the bread and give it a few minutes to soak. Squeeze the milk bread with your hands, straining the excess milk from the bread. Place the soaked milk bread in a large bowl. 

Mash the garlic cloves with a mortar and pestle until it forms a paste. Alternatively, press the garlic into a paste using a garlic press.

Add the ground beef, mashed garlic, shredded parmesan, egg, salt, pepper, and ground nutmeg to the milk-soaked bread.

Mix the Italian meatball mixture with your hands until combined.

In a wide nonstick pan with a lid, heat the vegetable oil and olive oil on medium heat. Form balls 1.5" sized balls with the Italian meatball mixture. Place into the oil. Caramelize the outside of the meatballs evenly for about 5 minutes on medium heat covered. Using a slotted spoon, place the meatballs on a paper towel lined plate.

Finely dice an onion. Mince the garlic. In a large pot with a cover, heat up the olive oil on medium-high heat. Add the onions and garlic until they start to brown on the edges. Then add the strained tomatoes, water, dried Italian herbs, salt, and pepper. Cover the tomato sauce on medium-high for about 5 minutes.

Add the meatballs to the tomato sauce and turn the heat to medium. Continue to cover the meatball and spaghetti sauce and cook for another 15 minutes. The sauce should thicken up. 

While the spaghetti sauce is cooking, prepare the spaghetti pasta. Boil water in a large pot. Add the dried spaghetti pasta noodles and cook as per the instructions on the box. Drain the pasta.