Heat olive oil in a medium stock pot over medium heat. Add onions and
garlic and cook until soft. Puree tomatoes with their juices in a blender
and add with crushed tomatoes, tomato paste, 1 cup water, bay leaf,
chopped parsley, Cubano chile pepper, and bring to a boil. Season to
taste, with salt and pepper. Reduce heat and cook until slightly
thickened, about 30 minutes. Add meatballs and let simmer for 10 to 15
minutes, until the sauce has thickened and meatballs are tender. Remove
the bay leaf.
Combine all the meatball ingredients in a medium bowl, except olive oil.
Season with salt and papper. Roll the mixture into 1 1/2 inch balls.
Heat the olive oil in a large saute pan over medium-high heat. When oil
is hot, fry meatballs, in batches as needed, until golden brown, but not
cooked through completely. Remove with a slotted spoon and add to sauce.
Cook 1 pound pasta and drain. Serve pasta with meatballs on top and
garnish with fresh basil and parmesan cheese.