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Preheat oven to 350°F (180°C).Beat egg lightly in a large bowl. Add meat, onion, bread, 1 cup tomato sauce, salt, pepper and lightly work with hands until just combined. Form into a roll and transfer to a previously oiled pan. Bake and cook for 10 minutes.
Combine water, vinegar, brown sugar, mustard and the remaining tomato sauce in a bowl. Bring to a boil over medium heat. Once meat is 10 minutes in the oven, spoon enough sauce over meat. Continue to bake for 1 hour and 10 minutes approximately. Spoon sauce every 30 minutes over meatloaf.
Remove from oven and stand meat in pan on a rack for 15 minutes.Bring remaining sauce to a boil and serve with meat loaf.
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