Bake frozen meatballs in a 9x13 pan in the oven according to package directions.
While they bake, combine and heat the following in a saucepan:
1 can cream of chicken soup
1/2 cup sour cream
1/3 cup milk
1/2 teaspoon nutmeg
Stir the meatballs into the sauce. Serve over rice.
Can also be made by browning the meatballs in a skillet, then adding the sauce and heating it up.