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In a large bowl mix together the meatball ingredients with your hands until well combined.
Shape the mixture into balls by rolling them in your palms to form meatballs about 1-½ inches in diameter (should make roughly 18 to 20 meatballs), and place them on a baking sheet.
Cover the meatballs and refrigerate for 2 hours to allow flavors to meld.
Remove the meatballs from the fridge and preheat the oven to 425° F.
Bake the meatballs for 15 to 20 minutes, or until an internal temperature of 160°F. Remove the meatballs from the oven and set aside.
Make the sauce: Stir the vinegar, soy sauce, sesame oil, red pepper flakes, ginger, and garlic together and cook in a large pan over medium heat about 2 minutes or until it starts to boil. Reduce heat to medium-low.
In a small bowl mix together the cornstarch and water until cornstarch is fully dissolved. Stir the cornstarch mixture into the sauce and cook until thickened, about 1 minute.
Add the meatballs to the sauce along with the green onions and peanuts and toss to coat.