Place beef, egg, bread crumbs, seltzer or soda, garlic powder, salt and pepper in a bowl. Mix lightly but well to combine all ingredients.
Shape into ¾-inch round balls, using your hands, a melon baller or a small scoop. Don't over-handle them, though, or they'll get tough. Set aside.
In a 2- to 3-quart saucepan, heat cranberry sauce and chili sauce over medium heat, stirring to combine. Bring to a simmer.
Drop meatballs into sauce. Return to a simmer. Cook, uncovered, for 45 minutes.
Serve with a toothpick in each meatball, or over rice pilaf if desired.
Recipe courtesy of Quick & Kosher: Recipes from the Bride Who Knew Nothing by Jamie Geller (Feldheim 2007).