Combine ingredients for meatballs in large bowl and set aside to rest for 15 minutes.
Form meatballs.
Except for peas, combine sauce ingredients, bring to boil; add meatballs and cook covered for 25 minutes on medium heat, stirring gently once or twice during this time.
Add frozen peas to pot.
Continue to cook 20 to 30 minutes on medium heat, stirring occasionally.