Grate the bread on the large holes of a box grater into coarse crumbs and put into a large bowl along with the milk and set aside for 5 minutes to allow the bread to soak up the milk. Add the meatloaf mix, Parmesan, parsley, onion, garlic, egg, 1 teaspoon salt and a few grinds of pepper and mix until just combined. Shape the meat mixture into 18 meatballs. Refrigerate for at least 1 hour or up to overnight.
Bring the marinara sauce to a very light simmer in a large Dutch oven or large wide pot. Heat 2 tablespoons of the oil in a large nonstick skillet over medium-high heat. Working in batches, add half the meatballs and cook, turning occasionally until browned on all sides, about 6 minutes. Transfer the meatballs to the marinara sauce as they are browned. Heat the remaining 2 tablespoons oil in the skillet and repeat with the remaining meatballs.
Bring the sauce to a boil, lower the heat, and simmer, covered, gently stirring occasionally until the meatballs are cooked through, about 15 minutes. Remove from the heat and stir in the basil. Adjust the seasoning with additional salt and pepper. Serve over hot pasta.
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