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Heat the olive oil in a skillet over medium heat.
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Add the diced onion and sauté for 4-5 minutes until soft.
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Transfer to a large bowl.
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Add the lamb, chilies, garlic, cumin, paprika, and salt.
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Stir well to fully combine.
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Using your hands, form the mixture into small meatballs and set on a plate.
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Melt the coconut oil in the same skillet over medium heat.
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Add the meatballs a few at a time and cook for 3-4 minutes per side.
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Once all of the meatballs have been browned, add them all into the pan and pour in the ingredients for the sauce.
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Cook the meatballs in the sauce for 8-10 minutes, stirring regularly.
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Serve warm and garnished with basil.