To prepare meatballs, combine first 9 ingredients in a medium bowl. Shape mixture into (1-inch) meatballs; place on a broiler pan coated with cooking spray.
Bake at 400 for 12 minutes or until done.
To prepare sauce, heat a large Dutch oven coated with cooking spray over medium-high heat.
Add 3 cups onion; cook 3 minutes, stirring occasionally. Stir in tomato, sugar, 1/2 teaspoon salt, garlic, and jalapeo; bring to a simmer over medium-high heat. Reduce heat to medium; cook 20 minutes, stirring occasionally. Stir in 3 tablespoons parsley and minced cilantro. Gently break eggs over simmering liquid; cover and cook 10 minutes or until the eggs are set.