Savory Glazed Meatballs

1-1/2poundslean ground beef
18-ounce canwater chestnuts, chopped
2eggs
1/3Cupdry bread crumbs
1TablespoonWyler's beef flavored boullion
116-ounce canBAMA Peach Preserves
112-ounce canChili sauce
1packageLipton Onion soup mix

In a large bowl, combine meat, water chestnuts, eggs, bread crumbs and boullion; mix well. Shape into 1-1/4 inch meatballs. In large skillet, brown meatballs. Remove from pan; pour off fat. In a skillet, combine remaining ingredients; mix well. Over low heat, cook and stir for 5 minutes. Add meatballs; simmer uncovered for 10 minutes.