PREHEAT oven to 350º F. Foil-line 3 baking sheets and spray with nonstick cooking spray.
COMBINE ground beef, oats, evaporated milk, eggs, ketchup, taco seasoning and black pepper in large bowl until just mixed. Form mixture into 120, 1-inch meatballs. Place on prepared baking sheets.
BAKE for 15 to 20 minutes or until no longer pink in center. Drain on paper towels, if needed.
THREAD two meatballs and one piece of pepper on each skewer. Place on large serving platter. Serve with salsa and sour cream.
• Meatballs can be made and baked ahead of time, refrigerated for up to 3 days or frozen up to 3 months and heated prior to serving.
• Meatballs can also be served individually with toothpicks and dipping bowls of salsas.