Put the hot tap water into a 2-3 qt. glass casserole dish. Make sure the cream cheese has warmed to room temperature and add it to the hot water. Smush and stir the cream cheese into the water. Add the sauce mix from the packaged dinner and the nutmeg. Mix all ingredients well. Then stir in the uncooked noodles. Place the covered casserole dish into a 400 degree oven for 30 minutes.
While the casserole is cooking mix all of the ingredients for the meatballs together like you would when making a meatloaf. Roll the mixture into 16-20 meatballs. Place a cookie cooling rack onto a cookie sheet. Then arrange the meatballs onto the pan and bake at 400 degrees for 15 minutes.