In a bowl, combine onions, crumbs and parmesan cheese.

Add beef and mix well.

Shape into 1 inch balls; place on a rack in a shallow baking pan.

Bake at 400° for 15 to 20 minutes or until no longer pink.

Meanwhile, arrange bread in a single layer in an ungreased 13 x 9 baking dish.

Combine cream cheese, mayonnaise, Italian seasoning and pepper; spread over the bread.

Sprinkle with 1 cup mozzarella cheese.

Combine sauce, water and garlic; add meatballs. Pour over cheese mixture; sprinkle remaining cheese over top.

Bake, uncovered, at 350° for 30 minutes or until heated through.