1Heat the oven to 375 degrees F. Line a rimmed baking sheet with aluminum foil.
2Thoroughly mix the beef, bread crumbs, egg, garlic and 1/4 cup picante sauce in a large bowl. Shape the mixture firmly into 40 (1-inch) meatballs. Place the meatballs onto the baking sheet.
3Bake for 15 minutes or until the meatballs are cooked through, turning them over once halfway through the bake time.
4Heat the remaining picante sauce and jelly in a 12-inch skillet over medium-high heat to a boil. Reduce the heat to low. Cook for 15 minutes or until the mixture is reduced to 1 cup. Stir in the thyme, if desired. Add the meatballs to the skillet and cook until the meatballs are hot, stirring occasionally. Serve the meatballs on toothpicks.
Make-Ahead: The meatballs can be prepared and baked up to 1 day in advance and stored in the refrigerator. Before serving, prepare the picante-jelly mixture and add the meatballs to the skillet. Cook until the meatballs are hot, stirring occasionally.