Soak the white bread in the milk until it is absorbed, and then mix in the egg, bread crumbs, basil, oregano, chili flakes, and salt. Stir with a fork until combined, and then gently mix into the ground beef.
Roll into quarter-sized meatballs, and pan fry until browned on the outside. Don't worry about the center being fully cooked, it'll finish cooking in the sauce.
Sauce
Start your sauce by sautéing the garlic and onions in the olive oil over low to medium low heat. Cook for about 5 minutes, or until the onions are soft and translucent.
Add in the red wine, and cook 2 minutes. Add in the tomatoes, and crush the whole tomatoes with a fork. Let simmer, stirring frequently, over medium heat. Cook for about 10 minutes, and then add the meatballs back into the sauce.
Stir gently periodically to prevent scorching, and let cook another 15 - 20 minutes.
Add in the fresh basil and oregano and cook for 2 minutes over low heat, and serve immediately with your favorite pasta. Garnish with lots of fresh Reggiano.