Heat oven to 350°F. In medium bowl, combine all meatball ingredients; mix well. Shape into 32 meatballs; place in ungreased 15x10x1-inch baking pan.
Bake at 350°F. for 15 to 20 minutes or until meatballs are thoroughly cooked.
Meanwhile, heat oil in large nonstick skillet over medium heat until hot. Add 1/4 cup onion; cook about 5 minutes or until tender, stirring frequently. Add coconut milk and peanut butter; stir until well combined. Stir in all remaining sauce ingredients until well blended. Reduce heat to low; simmer until thickened.
Add meatballs to sauce; stir gently to coat. Serve in chafing dish or slow cooker on low setting.