Preheat the oven to 400 degrees F.
To a large bowl, add the lean ground beef, egg, 2 tablespoons of Parmesan cheese, minced garlic, onion powder, Italian seasoning, salt, and pepper.
Mix until it is all blended. Don't overmix, or it will become tough.
Form into 24 - 3/4 to 1 inch balls. Place formed meatballs onto a baking sheet.
Bake in the oven for 13 minutes, or until the internal temperature reaches 160°F.
Place the meatballs in a baking dish, then top them with the low carb spaghetti sauce.
Sprinkle the remaining Parmesan cheese over the sauce, then top with the mozzarella cheese.
Bake uncovered 15-20 minutes, or until the cheese is melted. Top with fresh basil.