Country Herbed Meatloaf

Here's a meatloaf recipe we love here in our home.

Country Herbed Meatloaf from Country Magazine

Sauce:
1/4 cup olive oil
8 oz. fresh mushrooms
1 large onion, finely chopped
1 garlic clove, minced
1 28 oz can crushed tomatoes
1 6oz. can tomato paste
2 tsp. salt
1/8 tsp. pepper
2 tsp. sugar
1 cup water
1 bay leaf
2 Tbsp. chopped fresh basil or 2 tsp. dried basil

Meatloaf:
2 lbs. ground beef or combination of ground beef, pork and veal
1 cup seasoned dry breadcrumbs
3 Tbsp. milk
2 eggs, beaten

In a skillet, heat oil on high. Saute the mushrooms, onion and garlic until softened. Add tomatoes, tomato paste, salt, pepper and sugar. Remove 1 1/2 cups. Add water, bay leaf and basil to skillet. Simmer, uncovered for 45 minutes, stirring occasionally.

Meanwhile, combine all the meatloaf ingredients with the 1 1/2 cups reserved sauce. Press into a 9X5X3" loaf. Bake at 350 degrees for 45 minutes. Remove from oven and drain. Spread 1/2 cup of herb sauce over the top of the meatloaf and return to the oven for 15 minutes. Serve with the extra sauce over the sliced meatloaf.