Preheat oven to 375°F, and line a baking sheet with parchment paper. Adjust the oven rack to the middle position.
Slice mozzarella into 24 small chunks and set aside.
In a large bowl, mix together ground meat, oil, onion, egg, almond flour, parmesan cheese, parsley, basil, and pepper. Mix just until combined (over mixing will create tough meatballs!)
Divide meat into 24 even pieces. Wrap each piece around a piece of mozzarella cheese. Roll into a ball ensuring all of the cheese is completely covered by the meatball.
Space evenly on the baking sheet, and bake for 30 minutes, rotating halfway through. A little of the cheese may leak out of some of the meatballs, that's fine… there is plenty inside, too!
While they are baking, prepare the red sauce. Heat a medium saucepan over medium heat for 1 minute. Add olive oil and heat through for another minute.
Add diced onion and stir for 1 minute. Add dried spices (salt, pepper, and oregano.) Cook for another 4-5 mins until softened, stirring occasionally.
Throw in the garlic cloves and sauté one more min, stirring frequently.
Add the tomatoes and fresh basil. Let the mixture come to a low boil. Add the coconut sugar, stir, and turn the heat down to a simmer. Let cook for about 10 minutes, stirring occasionally.
Add butter and let it simmer for another 7-10 minutes so all the flavors meld together. Taste for additional salt and pepper.
Remove meatballs from the oven, gently stir into the sauce, and let simmer on the stovetop for an additional 15 minutes. Taste for salt and pepper and serve with your choice of pasta or low carb pasta.