Preheat oven to 400 degrees. Lightly grease a baking sheet.
In a large mixing bowl, make your meatballs by combining ground beef, bread crumbs, basil, oregano, salt, red pepper flakes, worcestershire sauce, and milk. Knead together until well mixed. Form into mini meatballs using about 1 tablespoon of meat for each ball. Place meatballs on prepared baking sheet. Bake at 400 degrees for about 20 minutes.
While your meatballs are baking, pour olive oil into a large dutch oven, or oven safe pot, over medium-high heat. Pour in diced onion and mushrooms. Saute for 5 to 7 minutes until onions are soft and translucent, and mushrooms are cooked. Pour in spaghetti sauce, reduce heat, and let simmer until pasta and meatballs are ready.
Cook pasta in boiling water, according to package directions.
Prepare the cheese topping in a small mixing bowl by combining cream cheese and ricotta. Mix together until smooth.
Once the pasta is done, pour it into the large pot with the sauce. Once meatballs are cooked, gently stir them in being careful not to break them up. Spread cheese mixture on top, and sprinkle parmesan cheese over.
Reduce oven heat to 350 degrees and place the entire pot into the oven. Bake for 20 minutes until the cheese is melted and bubbly. Serve hot.
If you don't have an oven safe pot, combine the pasta, sauce, and meatballs in a lightly greased 9x13 pan. Then, spread the cheese mixture on top and bake at 350 degrees for 20 minutes.