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1. To make the meatballs, place the bread crumbs in a large bowl. Sprinkle with the milk and let stand until the crumbs soften, about 3 minutes. Add the ground round, eggs, shallots, parsley, salt, and pepper and mix well. Cover and refrigerate for at least 15 minutes or up to 4 hours.
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2. Position a rack in the center of the oven and preheat to 375u00b0F. Lightly oil a metal roasting pan.
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3. Using your wet hands rinsed under cold water, shape the meat mixture into 18 equal meatballs. Arrange in the roasting pan and bake until lightly browned, 20 to 25 minutes.
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4. Transfer the meatballs to a plate. Pour out any fat in the pan. Heat the pan over medium-high heat until sizzling. Add 1/2 cup water and bring to a boil, scraping up the browned bits with a wooden spatula. Remove the pan from the heat and set aside.
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5. Meanwhile, start the sauce. Combine the oil and pancetta in a large saucepan over medium heat and cook, stirring occasionally, until the pancetta is browned, about 10 minutes. Using a slotted spoon, transfer the pancetta to paper towels to drain.
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6. Increase the heat to medium-high. Add the mushrooms to the fat in the saucepan and cook, stirring occasionally, until browned, about 7 minutes. Stir in the shallots and cook until they soften, about 2 minutes. Add the butter and let it melt. Stir in the carrot. Sprinkle with the flour and stir well. Stir in the deglazed pan juices, the broth, wine, brandy, if using, tomato paste, and thyme and bring to a boil. Reduce the heat to medium-low and simmer until lightly thickened, about 10 minutes.
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7. Return the meatballs and the pancetta to the skillet and cover with the lid ajar. Cook until the carrot is tender, about 15 minutes. Season with salt and pepper. Serve hot, sprinkled with parsley.
