Put first 8 ingredients into a large bowl; mix thoroughly. Heat 2 tablespoons fat in a large skillet. Form meat mixture in 1-inch balls, using a teaspoon. Drop into skillet, a few at a time, brown on all sides. Remove and keep in a warm place. Continue fry all meat balls are browned. Use more fat as needed.
Add hot water to drippings in skillet; bring to a boil. Blend flour with cold water. Stir into hot mixture; cook until thickened, stirring constantly. Return meat to skillet. Cover; simmer 30 minutes. Arrange rice around the edge of a flat serving dish. Pour meat balls on gravy in center. Makes 6 servings.
SPANISH STEAK: Pack 1 ½ pounds seasoned chopped beef in greased 8 x 8 inch pan. Pour over 1 cup tomato sauce. Top with ½ cup grated cheddar cheese, 12 stuffed olives, sliced. Bake in hot oven, 400°F., 30 minutes. Makes 6 servings.