Using a food processor, grind the pumpkin seeds until they become a powder.
Add the meat, chopped onion, and garlic. Pulse until the mixture becomes smooth. If it does not come together, add up to 1/2 cup water.
Transfer the mixture to the refrigerator and allow to chill 30 minutes to an hour.
In a large pot, drizzle oil over medium heat.
Add the sliced onion and cook, stirring occasionally, until softened and beginning to turn golden.
Mix in the tomatoes and chilis. Cover and cook for 5 minutes. Add the 1 1/2 cups water and bring to a boil. Reduce heat to a simmer and cover.
Remove the meat mixture from the refrigerator. Form into golf ball size meatballs.
Increase the heat of the sauce to medium high and gently add the meatballs.
Cover and cook, gently stirring occasionally, for 10 minutes. Reduce heat to medium and continue to cook, stirring occasionally, for 20 minutes.
Reduce heat to a simmer and cook for another 30.
Fold in the chopped parsley and serve immediately with steamed rice.