Combine Meatball Ingredients: In a large bowl, soak the breadcrumbs in milk for 5 minutes. Add the ground beef, ground pork, egg, minced garlic, chopped parsley, salt, black pepper, and smoked paprika. Mix until well combined.
Shape Meatballs: Using your hands, form the mixture into 1-inch (2.5cm) meatballs.
Brown Meatballs: In a large skillet, heat olive oil over medium heat. Add the meatballs in batches, being careful not to overcrowd the pan. Cook until browned on all sides. Transfer to a plate and set aside.
Prepare Saffron Tomato Sauce: In the same skillet, add 1 tablespoon of olive oil and sauté the onion until translucent. Add the minced garlic and saffron threads, cooking until fragrant.
Simmer Sauce: Add the crushed tomatoes, chicken stock, sugar, salt, black pepper, and bay leaf to the skillet. Bring to a simmer.
Cook Albondigas in Sauce: Return the browned meatballs to the skillet with the sauce. Cover and simmer for 20 minutes, or until the meatballs are cooked through.
Serve: Discard the bay leaf and serve the albondigas hot, garnished with extra chopped parsley if desired.