Combine 1/3 cup of soup with beef, rice, egg, onion, salt, & pepper. Mix thoroughly, shape firmly into 16 meatballs. They will hold their shape better when cooking, if you prepare them ahead of time and refrigerate them for 1/2 hour or longer.
Brown meatballs in shortening, pour off fat. (If there is only a small amount of fat, it adds flavor to the gravy, so leave it in the pan.) Blend remaining soup, sour cream, and water - pour over meatballs and cook over low heat 20 min. They tend to stick, so you need to loosen them from the bottom of the pan from time to time. Enjoy!