In a medium mixing bowl, stir together the egg, breadcrumbs, salt, white pepper, Parmesan cheese, garlic powder and evaporated milk. Crumble in the ground beef and toss to combine, but do not over mix.
Form the ground beef mixture into 8 large meatballs. Set aside.
Set the Instant Pot to the saute function, add the olive oil and raw meatballs. Cook, turning every so often for 5 minutes. Stir in the onion and garlic, sauteing for 2 minutes.
Add the water, crushed tomato, Italian seasoning and fennel seed, tossing to coat the meatballs.
Break the spaghetti pieces in half and place over the meatballs and sauce, spoon sauce over the pasta to try and cover it.
Lock lid in place. Set to manual high pressure and set for 10 minutes.
Use quick release method. If the sauce is too watery, change function to simmer for 3-4 minutes and leave it uncovered for the water to evaporate.
Serve and top with freshly grated parmesan cheese.
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Notes
About 50% of the individuals who have made this received a "burn notice" for too little liquid. Crushed tomatoes can vary greatly by brand as to how much liquid versus whole tomato is in the can. If yours is more of a puree, add 1 cup of water. If yours has large chunks of tomato and is less liquidy or really thick, add an additional 1/2 cup (1 1/2 cups total) water. Toss well when finished and allow to sit to let some of the water mix into the sauce.