Mix all ingredients together gently for meatballs in big bowl. Heat big skillet up on medium heat. Form 12 meatballs and drop in greased skillet. Brown meatballs on all sides and then remove and set aside.
Note- they will not be cooked all the way through. Cooking will continue in sauce.
In a 6 quart dutch oven or big skillet pan heat olive oil on medium heat. Add mushrooms and cook until soft. Reduce heat to med-low and add garlic and chili flakes. Saute until garlic becomes golden in color (do not burn garlic).
Add tomatoes. Season with salt. Add meatballs and sugar. Stir and make sure meatballs are down in sauce. Bring mixture to a boil on medium heat then cut back to med-low. Cook for 45 minutes uncovered to reduce sauce.
Add cooked pasta. Toss. Add parsley and small amounts of pasta water until saucy enough for you. Serve immediately