Meatballs with Brandied Peach Sauce

2 pounds ground beef
3/4 cup milk
1/2 cup bread crumbs
1 tablespoon Worcestershire sauce
1 1/2 teaspoons salt
1 teaspoon garlic powder
1/4 teaspoon each nutmeg and ginger
1/8 teaspoon pepper
2 drops hot pepper sauce
2 tablespoons vegetable oil

Brandied Peach Sauce:
1 (1 pound 2 ounce) jar peach preserves
3/4 cup light brown sugar
1/2 cup brandy
1/2 cup peach brandy
1/4 teaspoon nutmeg
1 tablespoon cornstarch (optional)

Blend beef, milk, crumbs and seasonings in bowl. Shape mixture into 1 1/2 to 2-inch balls. In large skillet brown meatballs. Remove and keep warm. Lower heat and add peach sauce to meat drippings. Simmer 10 minutes. Add meatballs to sauce and coat thoroughly. Cover and simmer 45 to 60 minutes.

Transfer meatballs to chafing dish. If needed blend cornstarch and 1 tablespoon water. Add to sauce and cook stirring until thickened. Pour over meatballs.