Mix breadcrumbs and milk in a large bowl. Let sit 2 minutes, this is your panade, and it's doing important work. Don't rush it.
Add ground beef, egg, garlic powder, onion powder, salt, pepper, and parsley to the bowl. Mix with your hands until just combined, don't overwork it or the meatballs turn tough.
Roll into 1½-inch balls. You should get about 18–20. Set aside on a plate.
Heat a large Dutch oven or deep skillet over medium heat. Add 1 tbsp butter. Once it foams, add meatballs in a single layer, don't crowd them.
Brown meatballs on all sides, about 6–8 minutes total. They don't need to be cooked through yet, just browned. Remove and set aside.
In the same pot, add remaining butter and sliced onion. Cook over medium heat for 3–4 minutes until softened and slightly golden. Scrape up the brown bits, that's flavor, not burnt residue.
Add minced garlic, cook 30 seconds. Sprinkle in flour and stir constantly for 1 minute, this cooks out the raw flour taste.
Pour in beef broth slowly while whisking. Add Worcestershire sauce and thyme. Bring to a gentle simmer.
Add meatballs back in. Nestle them into the gravy, cover, and simmer on medium-low for 10 minutes.
Stir in dry egg noodles. Cover and cook another 8–10 minutes, stirring occasionally, until noodles are tender and have absorbed most of the gravy.
Taste, adjust salt and pepper, garnish with fresh parsley. Serve immediately, straight from the pot if you're keeping it Amish.