Heat oven to 350°F.
Bell pepper or onion strips make the breast of each penguin. Blanch peppers or onions by placing in boiling water 20 seconds; plunge into ice water. Drain; set aside.
Cut 16 diagonal slices (1/4-inch thick) from carrot. To make beaks, cut a small triangle from edge of each carrot slice; set aside. Place the carrot slices for the feet in small microwavable bowl. Cover; microwave on High 30 seconds. Uncover; set aside. For head of each penguin, make small hole in each of 16 meatballs to hold beak; push skewer through meatball, starting at top of head. To place beak, insert carrot triangle into small hole of each meatball, inserting tip of skewer into carrot to secure in place.
Count out 16 additional meatballs to use for body of each penguin. Push skewer with first meatball (head) through 1 end of pepper or onion, then 1 meatball (body), and then through opposite end of pepper or onion. Continue pushing point of skewer into carrot slice with cutout facing forward as the feet.
Place penguins in ungreased shallow pan. Bake 10 to 12 minutes or until hot.