Whisk the egg in a small bowl. Combine the whisked egg, ground beef, chili powder, paprika, Italian herbs, salt, black pepper, and fresh mozzarella with your hands until well-incorporated.
Separate the meat into ten equally sized balls. Flatten to make a 1/2 inch thick patty.
Place a torn piece of mozzarella in the center of a meatball patty. Form the patty around it to make a ball shape. Repeat with the rest of the of the meatballs.
In a large saucepan, heat the olive oil over medium heat. Add the meatballs and brown on all sides.
When meatballs are browned, add the pasta sauce to the skillet and simmer for about 5 minutes, turning occasionally.