Make the meatballs: In a large bowl, combine the ground beef, egg, panko, garlic powder, onion powder, paprika, salt, and pepper. Mix gently until just combined, do not overwork the meat.
Form into one-inch meatballs (about twelve) and set aside on a plate.
Start the sauce: Heat olive oil in a large braiser or deep sauté pan over medium heat. Add the chopped onion and cook until softened and lightly golden, about 3-4 minutes.
Deglaze with wine: Pour the wine in and let the wine reduce for about a minute.
Add the tomato sauce, water, brown sugar, lemon juice, paprika, salt, and pepper. Stir and bring to a gentle simmer for 3-5 minutes. Taste and adjust sweetness or tanginess.
Add the meatballs: Nestle the meatballs into the sauce in a single layer. Spoon some sauce over the top.
Simmer: Cover, leaving a small opening and simmer gently for 25-30 minutes, until the meatballs are cooked through and the sauce has thickened slightly.
Serve: Taste one more time for seasoning. Serve hot over rice and spoon extra sauce on top.