Set meatballs aside. Add the butter
and mushrooms to the pan and saute until lightly browned, about 3 minutes. Add the sherry
and chicken stock
, to deglaze
the pan. Sprinkle in the instant flour
and cook until sauce thickens. Add the half-and-half, Worcestershire and bay leaves. Bring to a simmer
, whisking often until thickened. Season, to taste, with salt and pepper. Remove pan from heat, add meatballs back to the pan. Bake in the oven for 25 minutes. Discard bay leaves
Serve meatballs with preserves.