Combine ground beef, evaporated milk, oatmeal, cracker crumbs, eggs, chopped onion (1/2 cup), garlic powder (1/2 teaspoon), salt, pepper, and chili powder in a large bowl.

Mix all ingredients until well combined.

Shape the mixture into walnut-sized meatballs.

Place the meatballs in a large baking pan.

In a separate bowl, combine ketchup, brown sugar, liquid smoke, garlic powder (1/2 teaspoon), and chopped onion (1/4 cup).

Pour the sauce over the meatballs.

Bake in a preheated oven at 350°F (175°C) for 45 minutes, or until the meatballs are cooked through and the sauce is bubbly.