COMBINE first 8 ingredients, mixing well; shape into 36 one-inch meatballs.
COOK in oil over medium heat 10 to 15 minutes or until browned. Drain on paper towels.
COMBINE grape jelly and chili sauce in large skillet. Cook over medium heat, stirring until well combined, about 3 minutes.
PLACE cooked or thawed meatballs in a single layer in skillet coating each meatball evenly with sauce. Cover; simmer 10 minutes, stirring occasionally, until sauce is bubbly and meatballs are cooked through.
TRANSFER glazed meatballs to a chafing dish or slow cooker. Serve with frilly toothpicks.