Preheat oven to 375 degrees.
In a small skillet, add one tablespoon olive oil and saute the onion and garlic over medium heat until softened, set aside.
In a large bowl, whisk the egg, and then add the remaining ingredients along with the sautéed onion and garlic and mix well.
Form the meat mixture into meatballs.
Pour 1 tablespoon of oil into a shallow Dutch oven or cast iron skillet and heat to medium. Add the meatballs and sear them, turning once, 1-2 minutes per side. Work in small batches until all the meatballs are seared.
Over medium heat in the same pan sauté the shallot until translucent.
Add the flour and cook for a minute, stirring to cook the flour. Gradually add the chicken stock a little at a time, stirring to incorporate completely.
Add the cooked meatballs back to the pan and turn to coat all over with pan dripping sauce. Cover with lid and cook on low to heat through. Season with salt if needed.