Preheat oven to 400 degrees. In a mixing bowl, combine the ground lamb, panko, minced garlic, egg, salt, pepper, and chicken stock. Mix gently by hand and form the mixture into 18 evenly-sized meatballs about 1 ½-inch in diameter and place on a nonstick or greased baking sheet. Lightly drizzle the meatballs with olive oil, rolling to coat on all sides, and arrange them in even rows. Roast the meatballs for 10-15 minutes, until cooked through.
While the meatballs cook, heat 1 tablespoon of olive oil in a medium-sized saucepot over medium heat. Add the red onion, season with salt and pepper, and cook for 8 to 10 minutes to soften. Add the balsamic vinegar to the onions and cook for 1 minute, or until somewhat reduced. Stir in the chicken stock, then add the red pepper paste and tomatoes. Bring the sauce to a bubble and adjust the seasoning as needed. Reduce the heat a medium-low and simmer for 10 minutes.
In a saucepot with a lid, combine the milk and chicken stock and bring to a boil. Whisk in the polenta and reduce the heat to low. Cook the polenta for 2 to 3 minutes, whisking frequently until it develops a dense but spoonable consistency. As the polenta begins to thicken, stir in the butter, rosemary, and honey, and season with salt and pepper. If it gets too thick, add a little water or more milk to the polenta. Remove from heat.
To serve family-style, spoon polenta into a large serving platter with sides, then gently add the meatballs. Spoon roasted red pepper sauce over the meatballs and enjoy!