Combine ingredients for meatballs gently. DO NOT OVERMIX. Shape into 1" meatballs and bake in preheated oven at 400 degrees for 10-15 minutes until centers are no longer pink. Remove meatballs to baking pan.
Meanwhile drain pineapple and set aside, reserving juice. Combine reserved pineapple juice, sugar, soy sauce, vinegar and water in mixing bowl. Add E-Z Gel gradually, stirring with a wire whisk. Add green peppers, pineapple and water chestnuts. Pour sauce over meatballs and bake for 20-30 minutes at 375 degrees until peppers are crisp-tender.
Serve over hot cooked rice.