Combine ground meats; add egg, milk, rice and salt.

Form into 1 1/2 inch balls; brown in a large skillet sprayed with non-stick cooking spray or add a little oil to the skillet.

Combine tomatoes, water, onion, salt, basil and bay leaf.

Drain excess grease from meatballs and add to sauce mixture.

Cover and cook for 7 to 9 hours on low.