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- Prepare meatballs: In a large bowl, combine pork, beef, egg, Parmesan, garlic, oregano, bread crumbs, salt and pepper to taste. Mix thoroughly but lightly, handling mixture as little as possible.
- Line a baking sheet with plastic wrap. Shape rounded teaspoonfuls of meat mixture into balls 1 inch in diameter, and place on plastic. Refrigerate while making sauce.
- Prepare sauce: Combine onion, garlic and oregano in a food processor, and puree until smooth. Combine butter and oil in a wide, deep pan, and place over low heat until butter melts. Add onion-garlic mixture. Simmer, stirring occasionally, about 10 minutes; do not brown. Add passata and 2 cups water to pan. Season with sugar, and salt and pepper to taste.
- Simmer for 10 minutes, then add milk and bring sauce back to a simmer. Gently drop in meatballs one by one so that they do not break (make sure the meatballs are submerged); do not stir pan. Cover pan partially with a lid, and simmer for 20 minutes.
- Adjust seasonings to taste. Place hot pasta in a large serving bowl. Pour most of sauce (reserving meatballs) on pasta, and toss to combine. Top pasta with meatballs, and serve.