Begin about 1 ¼ hours before serving.
In 12-inch skillet over medium heat, cook onion in 2
tablespoons butter until tender, stirring occasionally.
In large bowl, mix onion, ground beef, bread crumbs, mace, eggs, ¾ cup half-and-half, and 2 teaspoons salt.
Shape beef mixture into 1-inch meatballs.
In same skillet over medium-high heat, in 2 more tablespoons butter, cook meatballs, one-fourth at a time, until browned on all sides, removing meatballs to bowl as they brown and adding more butter if necessary.
Into drippings in skillet over medium heat, stir flour, sugar, pepper, and ½ teaspoon salt until blended.
Gradually stir in water and remaining 1 ¼ cups half-and-half, stirring to loosen brown bits from bottom of skillet; cook, stirring constantly, until mixture is thickened and boils.
Return meatballs to skillet; simmer, covered, about 15 minutes to blend flavors, stirring occasionally.
Spoon meatballs into chafing dish.
Sprinkle with chopped parsley.