Add one tablespoon of olive oil to the pot and saute the chopped sweet banana pepper for three to four minutes on high, stirring occasionally.
Pour in the canned tomatoes, including juice. Bring to boil.
While the tomato sauce is heating up, prepare the meatballs. In a medium-size bowl, mix two cups of raw rice with cubed onion. Continue with adding the ground beef, minced garlic, one tablespoon of sweet ground paprika, two tablespoons of salt, one tablespoon of ground black pepper, one tablespoon of caraway seeds, and one tablespoon of olive oil. Combine these ingredients with a hand. The last step is adding two eggs, again, combine with hand and form the meatballs. Set aside.
When the chopped pepper in the pot is soft, mix all the ingredients with a hand blender until there are no chunks of pepper or tomato. Add one teaspoon of garlic salt, one teaspoon of ground black pepper, one teaspoon of lemon juice, one teaspoon of Tabasco sauce, and two bay leaves. Cover and let simmer on low for ten minutes.
It's time for meatballs! One by one, carefully add the meatballs to the sauce. Cover and cook for an hour and a half to two hours.