Meatballs & Peppers

1 cup thinly sliced green bell pepper
1 cup thinly sliced red bell pepper
1 cup thinly sliced yellow bell pepper
1 1/3 cups water
1 (10 1/2-ounce) can beef consomme
1 bay leaf
1 (1-ounce) slice whole-wheat bread
1 pound ground round
1 tablespoon finely chopped onion
1/2 teaspoon dried oregano
1/2 teaspoon salt
1/2 teaspoon freshly ground black pepper
1 large egg white
1 garlic clove, crushed
2 teaspoons olive oil
2 tablespoons all-purpose flour
1/4 cup water
1/3 cup finely chopped fresh or 1 1/2 teaspoons dried basil
2 teaspoons white wine vinegar

Combine the first 6 ingredients in a large saucepan. Bring to a boil; cover, reduce heat, and simmer 20 minutes. While the peppers are cooking, place bread in a food processor; pulse 10 times or until coarse crumbs form to measure 1/2 cup. Combine breadcrumbs, beef, and next 6 ingredients (beef though garlic) in a bowl, shaping mixture into 36 (1-inch) meatballs. Heat olive oil in a large nonstick skillet over medium-high heat. Add meatballs; cook for 10 minutes, browning on all sides. Combine flour and 1/4 cup water in a small bowl; stir with a whisk. Add to bell pepper mixture in saucepan. Add meatballs; cook 3 minutes, stirring constantly. Stir in the basil and vinegar. Remove bay leaf.

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