Italian Meatballs With Peppers

1 pound ground turkey
1/4 cup finely chopped onion
1 teaspoon Italian herb seasoning
1/4 teaspoon salt
2 teaspoons olive oil
1 cup (1 large) chopped red bell pepper
1 cup (1 large) chopped yellow bell pepper
1 cup (3 ounces) sliced fresh mushrooms
1 clove garlic, finely chopped
1 teaspoon Instant Chicken Bouillon
1 1/2 cups (12 ounce can) Evaporated Fat Free Milk, divided
4 teaspoons all-purpose flour
2 cups hot cooked rice
Chopped fresh parsley

COMBINE turkey, onion, herb seasoning and salt in large bowl; form mixture into 24 one-inch meatballs. Heat olive oil in large skillet over medium-high heat. Add meatballs; cook for 3 to 4 minutes or until browned. Reduce heat to low; cook, stirring occasionally, for 15 minutes or until cooked through. Remove meatballs from skillet; keep warm. ADD bell peppers, mushrooms, garlic and bouillon to skillet; cook, stirring occasionally, for 2 to 3 minutes. Combine 1 tablespoon evaporated milk and flour in small bowl add to skillet. Gradually stir in remaining evaporated milk; cook, stirring frequently, for 5 to 8 minutes or until sauce is slightly thickened. Add meatballs to skillet; stir to coat Serve over rice. Garnish with parsley.