Cook the bacon in a Dutch oven over medium-high heat. Once the bacon is crisp remove it from the pan to a paper towel lined plate and set aside. Add the onions and cook until softened and translucent, about 8 minutes. Add the garlic and crushed red pepper and cook, stirring, for 1 minute. Add the tomato paste and cook until it begins to brown, about 2 minutes. Add the diced tomatoes and crushed tomatoes. Season the sauce with the basil, oregano, salt and pepper. Bring to a simmer over medium-high heat, stirring occasionally.
In a small bowl soak the bread in the evaporated milk. Once all of the milk has been absorbed, use a fork to mash the bread into a paste. Place the bread and the remaining ingredients, except spaghetti, in a large mixing bowl. Mix together just until combined. Form meatballs by rolling meat mixture into 2 tablespoon-sized balls. Place meatballs on a plate as they are formed. (Hint: If your hands are slightly damp, the meatballs will roll more easily without sticking.)
Place the balls into the simmering sauce 1 at a time. Allow the sauce to return to a simmer, and cook, partially covered. Let the meatballs to rest undisturbed for 25 minutes before stirring. When the meatballs rise to the top, stir gently. Simmer, partially covered, for an additional hour, stirring occasionally to prevent the sauce from sticking to the bottom of the pot. Remove the sauce from the heat and serve immediately over cooked spaghetti.
Yield: 4 servings