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Meatballs con Queso

1 1/2 pounds ground beef
1 1/2 cups bread crumbs
1/3 cup onion -- chopped
1/3 cup milk
3 tablespoons parsley -- chopped
1/4 teaspoon pepper
1 egg
3 tablespoons salad oil
16 ounces velveeta cheese
4 ounces green chiles -- chopped
1 package taco seasoning mix

Mix first 7 ingredients and shape into 1" balls. Fry in oil. Remove cooked meatballs from skillet; in same skillet, on low heat, stir in chilies, cheese, taco seasoning and 3/4 cup water. Simmer till cheese is melted, stirring constantly.
Return meatballs to mixture in skillet cover and simmer until completely heated throughout. Serve immediately with hot corn bread.

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