Place the ground beef, egg, ketchup, salt, and nutmeg in a large bowl.
Mix very gently with your hands, just until combined. Form the mixture into 24 one-inch balls.
Cut the bacon slices in half. Place a meatball on a half-slice of bacon, and roll the bacon around the meatball. Secure with a toothpick.
Repeat with the remaining bacon and meatballs.
Preheat the oven to 350°F.
Place the meatballs on a sheet pan (I like to use a wire rack on top of a sheet pan).
Bake for one hour, or until the bacon is crisp.
Serve with ketchup or bbq sauce for dunking.