Aunt Edna's Italian Sauce and Meatballs

1 lb Italian sausage
1 large onion, chopped
2 large cloves garlic
2 big (28 oz) cans tomato puree
2 cans tomato paste
1 t Italian seasoning
1 bay leaf
parsley, salt, and pepper

Meatballs:

2 lbs ground beef
2 eggs
5 slices hard bread (preferably Italian)
1 T grated parmesan cheese
1 clove garlic minced
1 onion grated fine
4 T tomato sauce

mix all together with hands (remove rings!) and form into balls
drop in sauce about 1 1/2 hours before sauce is done

Pour 2 T olive oil in pan and add sausage
cover pan so sausage will steam
let steam and brown about 10 minutes
remove sausage, add onion and garlic, brown
add tomato puree, paste and 4 cans of water for every can of paste
add seasonings
turn heat up until mixture comes to a boil, then lower heat, add sausage, simmer about 2 1/2 hours
add meatballs, simmer another 1 1/2 hours