Make meatballs: Combine meat, egg, 1 Tablespoon curry powder, and 1/2 tsp crushed red pepper in a large mixing bowl. Roll mixture into 1/2 inch balls.
Make sauce: In a small bowl, stir together water, cornstarch, 2 tsp curry powder, and 1/2 tsp crushed red pepper.
Heat 2 Tablespoons oil in large skillet over medium heat. Saute meatballs in skillet until brown. Carefully drain liquid from skillet. Add sauce mixture. Stir and simmer for 5 to 7 minutes, until sauce thickens and meat is done.
Note: For a creamier, milder curry, substitute 1 cup coconut milk for the water and cornstarch.