Preheat the oven to 375°F. Line a baking sheet with parchment paper.
In a medium mixing bowl, combine ground beef, chopped onion, panko bread crumbs, beaten egg, Italian seasoning, chopped parsley, kosher salt, and black pepper. Mix well until combined. You can use a spoon or your hands to knead the mixture.
Use a 1.5 tablespoon scoop to form meatballs. Roll the mixture into balls and place them about 2 inches apart on the prepared baking sheet. You should get 22-23 meatballs.
Bake the meatballs for 15 minutes. While the meatballs are baking, prepare the potatoes.
Boil the potatoes (peeled or unpeeled) for 15-20 minutes, or until fork-tender. Drain and rinse under cold water to stop the cooking process.
In a small bowl, combine crushed tomatoes, Italian seasoning, kosher salt, and black pepper for the tomato sauce. Stir to combine.
For the cream sauce, melt the butter in a 2-3 quart heavy bottom saucepan over medium-high heat.
Once the butter has melted, whisk in the flour. Cook for about 1-1.5 minutes, whisking continuously.
Slowly whisk in the milk, whisking constantly until thickened to the consistency of white gravy. Remove from heat and whisk in salt, pepper, and nutmeg.
Once the meatballs are done baking, remove them from the oven.
Slice the boiled potatoes about 1/8 inch thick.
Grease a 9-10 inch cast iron skillet, 9x9 baking dish, or a 3-3.5 quart casserole pan with non-stick cooking spray.
Line the bottom and sides of the baking dish with a single layer of sliced potatoes.
Arrange the meatballs on top of the bottom layer of potatoes, creating a circular pattern that shrinks to the center.
Fit the remaining potato slices in between the meatballs.
Spoon the tomato sauce evenly over the meatballs.
Spoon the cream sauce over the tomato sauce layer. Stir the cream sauce before spooning if needed.
Sprinkle the shredded mozzarella cheese over the top. Bake for 45 minutes, or until the top is golden brown.
Let the meatball and potato bake rest for 10-15 minutes before serving. Garnish with fresh parsley. Serve immediately.