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In a bowl mix the Swedish meatball packet with the milk and cream and whisk until somewhat smooth and set aside.
Preheat your oven to 375 degrees
Mix all the ingredients for the meatballs, don't over mix but combine well.
Form about 2 inch size meatballs and place on a cookie sheet, let rest on counter for 20 to 30 minutes.
Place in oven and cook until firm, about 25 minutes
In a deep sided skillet, melt your butter, add your caraway seeds and toast for a few minutes, drain your kraut and add to pan, then add bacon and sauté this for about 10 minutes. Then add your brown sugar and black pepper and sauté for 7 minutes.
Add the white wine to the kraut. You can omit the wine if you don't use alcohol or use a splash of a white wine vinegar. Sauté for 5 more minutes.
Add the meatballs to the kraut in the skillet and then pour over your sauce mixed with milk and cream and add the capers.
Bring to a low simmer. Put the lid on and simmer for 10 minutes or until the sauce thickens.
Serve on its own or with egg noodles or mashed potatoes.