Preheat the oven to 400°F (200°C).

In a mixing bowl, combine ground beef, breadcrumbs, parmesan cheese, egg, minced garlic, parsley, salt, and pepper. Mix until well combined.

Form the mixture into meatballs, about 1.5 inches in diameter.

Place the meatballs on a baking sheet and bake for 25-30 minutes or until cooked through.

In a large skillet, heat olive oil over medium heat. Add chopped onion and sauté until translucent.

Add minced garlic and cook for an additional minute.

Stir in crushed tomatoes, sugar, oregano, basil, salt, and pepper. Simmer for 20 minutes.

In a large pot, bring salted water to a boil. Add spaghetti and cook according to package instructions until al dente.

Drain the spaghetti and return it to the pot.

Add the meatballs to the sauce and stir to coat.

Serve the meatballs and sauce over the spaghetti. Garnish with fresh basil and grated parmesan cheese.