Preheat oven to 350 degrees. Grease baking sheet or line with parchment paper.
Pour milk over breadcrumbs to soak. Press bread down into milk to absorb. Allow bread to become very soggy, and then drain off any extra milk.
Combine all ingredients in large mixing bowl. Combine mixture thoroughly, using your hands or large spoon. Do not over-mix.
Roll meatballs into 12 large meatballs and place on baking sheet, evenly spaced.
Bake for 30 minutes.
Meanwhile, prepare the Marinara sauce.
Sweat onions with ½ teaspoon salt for about 20 minutes. Add garlic during last 5 minutes. Add cayenne and stir.
Add tomatoes, red wine, and water. Season with remaining salt and honey.
Simmer, uncovered, for 10 minutes or until sauce is nicely reduced and alcohol has cooked off.
Use immersion blender to partially blend sauce (optional). Taste and add additional seasoning as needed.
Add meatballs, cover, simmer for additional 10 minutes.
Enjoy on its own, or serve over pasta or polenta.