Grandma Moss's Meatloaf

1 ½ lbs hamburger
¾ cup oatmeal
2 eggs
1 ¼ cups chopped onion
2 t. salt
¼ t. pepper
½ cup water
½ cup ketchup

Mix and pour into loaf pan

Sauce:
6 T. brown sugar
1 ½ cups ketchup
2 t. dry mustard
½ t. nutmeg
3-4 strips of bacon

Mix and pour over meatloaf. Bake @ 350* for 1 hr or until meat in no longer pink.