Preheat your oven to 400°F and line a baking sheet with parchment paper for easy cleanup. This temperature allows meatballs to cook through while developing a light golden exterior in just 20 minutes.
Combine ground beef, breadcrumbs, eggs, milk, garlic powder, onion powder, salt, and black pepper in a large bowl. Mix gently with your hands until ingredients are just incorporated—overworking makes tough meatballs, so blend until you cannot see dry breadcrumbs but stop before the mixture becomes dense.
Roll mixture into 24 equal meatballs about 1.5 inches in diameter, then arrange them on your prepared baking sheet in a single layer. Bake for exactly 20 minutes until they reach an internal temperature of 160°F.
While meatballs bake, whisk together grape jelly, chili sauce, Worcestershire sauce, Dijon mustard, and cayenne pepper in a medium saucepan over medium-low heat. Stir constantly for 3–4 minutes until the jelly melts completely and all sauce ingredients combine into a glossy, smooth coating.
Remove baked meatballs from the oven and transfer them to the saucepan with your easy grape jelly cocktail meatballs recipe sauce. Gently toss to coat each meatball evenly, then simmer for 5 minutes so flavors meld beautifully together.
Transfer the finished meatballs to a slow cooker set on warm, or serve immediately on toothpicks. They stay perfectly warm and ready for two to three hours, making this crowd appetizer ideal for any gathering.