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1
Heat the oven to 400F (200C).
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2
In 12 inch skillet, over medium high heat, heat 1tablespoon vegetable oil; add onion and chili powder; cook about 10 minutes, stirring frequently, until onion is tender and coated with chili powder.
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3
Remove onion to large bowl; wipe skillet clean.
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4
To bowl with onion, add beef, egg, chilies, bread crumbs, 1 tablespoon of each of the cheeses and salt; using hands or wooden spoon, blend well.
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5
Shape mixture into 1 1/4 inch balls.
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6
In skillet over medium-high heat, heat remaining 2 tablespoon oil; add meat mixture; cook 15 minutes, turning frequently, until well browned on all sides and cooked through.
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7
Meanwhile, place tortilla chips in single layer on jelly-roll pan; bake 10 minutes until crisp and golden.
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8
Prepare Zesty Tomato Salsa.
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9
To serve: Spoon meatballs into center of large serving platter; sprinkle with remaining Monterey Jack and Cheddar cheese.
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10
Arrange tomato wedges and lettuce around meatballs if desired.
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11
Serve with tortilla chips and salsa.
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12
ZESTY TOMATO SALSA: In a saucepan over medium high heat, heat 1 tablespoon vegetable oil; add 1 each red and green bell pepper, cored, seeded and diced (about 2 cups), 1 medium size onion, diced (about 3/4 cup) and 1 large clove garlic, crushed.
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13
Cook about 10 minutes, stirring frequently, until tender.
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14
Stir in 2 large fresh, ripe tomatoes, diced (about 2 cups) and 1/4 to 1/2 teaspoon hot red pepper sauce; cook 1 minute longer until heated through.
