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Add the fresh parsley and basil to a blender and process, or finely chop. Add the chopped herbs to a mixing bowl, along with ground turkey, nutritional yeast, and salt. Combine without over mixing.
Roll mixture into balls with a 1 ½ in. diameter.
Cook meatballs in a skillet over medium heat for 10-15 minutes or until cooked through, using a pair of tongs to carefully rotate them every couple of minutes so that they can cook evenly. Remove from skillet and set aside.
Add diced mushrooms to the skillet (add oil or broth to the pan if needed) Cook the mushrooms for 5-6 minutes or until tender, seasoning evenly with salt and pepper.
Stir in the arrowroot flour and reduce heat to medium low. Let cook for 1 minute, stirring.
Add the broth and milk and let that simmer for 2-3 minutes to allow the liquid to thicken. You can add more broth for a runnier consistency and more arrowroot for a thicker texture.
Season with salt, pepper, and fresh parsley to taste. Add meatballs back to pan and enjoy!