Preheat your oven to 400°F. Line a baking large baking sheet with parchment paper. Using your hands, gently combine all of the meatball ingredients in a large bowl - do not overmix. Form small meatballs and place on baking sheet, bake for 17 minutes or until cooked through.
Soup:
In a large pot, melt the butter and the olive oil together. Add in the onion, carrot and celery and saute for 2-3 minutes on medium heat. Add in the mushrooms next and stir for another 2-3 minutes. Stir in the garlic for 30 seconds. Add in the Italian herb seasoning, paprika, salt and pepper to taste and tomato paste and stir to coat all. Next sprinkle on the flour and stir again to coat all. Pour in the broth and bring to a boil. Lower the heat to a simmer and cover and cook for 15 minutes.
Next, dump the meatballs into the soup and stir. Taste the broth and adjust any seasonings, if needed. Garnish with parsley and freshly grated cheese.