Combine mince, onion, basil, egg and breadcrumbs in a bowl. Season with salt and pepper. Shape 1 tablespoon mixture into a flat round. Place 1 cheese cube in centre of round. Shape mixture around cheese to form a ball. Repeat with remaining mixture and cheese.
Heat 1 tablespoon oil in a frying pan over medium-high heat. Cook meatballs, in batches, turning, for 3 to 4 minutes or until browned. Transfer to a plate. Cover with foil.
Heat remaining oil in pan. Add celery, carrot and zucchini. Cook, stirring occasionally, for 5 minutes or until celery starts to soften. Add tomato. Cook, stirring, for 2 minutes. Add tomato paste, crumbled stock cubes and 1 cup cold water. Bring to the boil. Reduce heat to low. Simmer, covered for 30 minutes or until sauce has thickened.
Return meatballs to pan. Simmer, covered, for 5 to 7 minutes or until meatballs are cooked through. Serve meatballs and sauce with spaghetti.
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