Marmalade Meatballs

1 egg
1/2 cup water
1 pound ground meat
1/2 cup bread crumbs
1/4 teaspoon salt
2 teaspoons horseradish
1 cup finely chopped water chestnuts
2/3 cup marmalade
1 finely minced garlic clove
2 tablespoons soy sauce
2 tablespoons lemon juice
1/3 cup water

Beat egg and the 1/2 cup water. Blend in ground meat, crumbs, salt, horseradish and water chestnuts. Roll into balls. Bake at 350 degrees F for 30 minutes.

While meatballs are baking, combine remaining ingredients in a saucepan. Heat slowly, stirring often.