In a large bowl, combine ground beef, bread crumbs, egg, onion powder, nutmeg and salt. If you are using white wine also add at this time. Using your hands shape mixture into small balls. Cook in a large skillet over medium heat until brown; set aside.
In a large stock pot bring 3 quarts water and bouillon cubes to a boil.
In a small saucepan, heat milk, water and butter until butter is melted and mixture is warm.
Place flour in a medium bowl. Whisk a small amount of the warm milk mixture into the flour to form a smooth paste. Then whisk the flour mixture into the remaining warm milk mixture in the saucepan.
Pour milk mixture into stock pot and then add sauerkraut and meat balls to soup. Simmer over low heat 30 minutes. Serve hot.