Combine ground beef, breadcrumbs, egg, smoked paprika, garlic powder, salt, and pepper in a mixing bowl. Mix gently until just combined, avoiding overworking the meat.
Divide the meat mixture into small portions and shape each into a small ball using your hands. Take a tiny cheese cube and press it into the center of each ball, shaping the meat around it to create a mini 'eyeball.'
Heat a tablespoon of oil in a skillet over medium heat until shimmering. Carefully place the meatballs into the skillet, ensuring they are spaced apart.
Brown the meatballs for 3-4 minutes, turning occasionally, until they develop a deep, even color and a slight crust on all sides.
Pour in the tomato sauce around the meatballs, adding a couple of sliced black olives on top of each for the 'pupils.' Cover the skillet and simmer gently for about 15 minutes, until the meatballs are cooked through and the sauce has thickened slightly.
Check the internal temperature of a meatball with a probe; it should read 71°C / 160°F. If needed, cook a few more minutes uncovered to thicken the sauce further.
Remove the skillet from heat and let the meatballs rest for 5 minutes. This helps the juices settle and the flavors meld.
Serve the meatballs hot, spooned with plenty of sauce, and topped with the sliced olives to mimic creepy eyeballs.