Preheat the oven to 400 degrees F. Combine the first seven ingredients in a bowl. Roll the mixture into 2" balls and place on a parchment paper-lined or non-stick baking sheet. Bake until cooked through, about 20 to 25 minutes. Meanwhile, place the pasta sauce and water in a medium-sized pot and bring to a simmer over medium heat. When the meatballs are cooked, drain them well; add them to the sauce and simmer, partially covered, for 10 minutes. Divide and mound the meatballs on the slices of Italian bread and, if desired, serve with freshly grated Parmesan cheese.
Use other ground meats to make these meatballs, such as pork, veal or turkey. Or, use a mix of meats, such as ground beef, pork and veal. Instead of tomato basil, use another type of pasta sauce, such as roasted garlic or mushroom. Serve the meatballs on a different type of bread, such as olive or sourdough.