Mix hamburger, evap. milk, 1/2 cup onion, 1/4 tsp. garlic powder, pepper, egg, oats, salt and chili powder. Shape into 1 1/4" balls. Place in 9x13 pan. Combine ketchup, brown sugar, 1/4 tsp. garlic powder, 1/4 cup onion, and liquid smoke for sauce. Stir until sugar dissolves. Pour over meatballs. Bake at 350 degrees for 1 hour.