In a large mixing bowl, whisk the egg until it is well-beaten. Add the Italian seasoned breadcrumbs, ground beef, chili powder, paprika, dried Italian seasoning, salt, black pepper, and minced garlic. Combine all ingredients thoroughly using your hands until the mixture is fully incorporated.

Divide the meat mixture into 10-12 portions, each about the size of a tablespoon. Flatten each portion of meat slightly, then place a piece of mozzarella in the center. Carefully encase the cheese by folding the meat around it, ensuring that the edges are sealed tightly to prevent the cheese from escaping during cooking.

Heat a large, non-stick skillet over medium heat. There is no need to add oil, as the fat in the meat will be sufficient. Add the meatballs to the skillet and cook them for several minutes on each side until they are browned evenly.

Pour the pasta sauce into the skillet, ensuring that it covers the bottom and reaches about halfway up the sides of the meatballs. Let the meatballs simmer in the sauce for approximately five minutes, turning them occasionally to coat them thoroughly in the sauce.